Billions lost following Indications of Trouble in US

On Friday, the world’s largest banks experienced a decline in stock prices, following indications of trouble at a US regional lender that sparked concerns over the wider sector.

Shares in SVB Financial, a major lender to the tech industry, fell by 60%, leading to a loss of $52 billion in market value for the four largest US banks on Thursday.

Banks in London, France, Switzerland, Japan, Hong Kong, and Australia also experienced losses, with Deutsche Bank among the biggest losers, with a 10% drop in its shares.

SVB Financial’s announcement of a stock offering and securities offloading to raise cash raised concerns of similar problems for other banks. Rising interest rates have hit the value of banks’ bond portfolios, leading to potential losses if they sell assets to cover the deposit drop.