Shares in ailing Swiss banking giant Credit Suisse have fallen to all-time lows as investors continue to bear witness to the failure of Silicon Valley Bank.
When Credit Suisse admitted to a “significant weakness” in its accounting procedures on Tuesday, its shares fell as much as 30% at one point.
Investors are concerned about how the struggling bank will deal with the fallout from the collapse of the American bank.
Concerns spread to stock markets, causing all major indexes to plummet.
According to Capital Economics’ Andrew Cunningham, “Credit Suisse’s problems once again raise the question of whether this is the beginning of a global catastrophe or just another ‘unique’ episode.”
The bank said there was no cause for alarm about its financial condition, with the chief executive saying its cash reserves were “still very, very strong”.
But concern over problems with such a major global player is weighing on banking stocks around the world.
As the Stoxx Europe bank share index fell 7%, the prime ministers of France and Spain stepped in to comfort investors.