Amid the shock from Swiss investment bank Credit Suisse, anxiety is spreading throughout the financial sector, leading to a decline in financial stocks in the domestic market during the early trading session on the 16th.
As of 9:49 a.m. on the day, JB Financial Group is trading at 8,760 KRW on the KOSPI market, down 3.84% from the previous trading day.
Hana Financial Group is down 2.86% at 40,800 KRW, and Shinhan Financial Group is trading at 34,850 KRW, down 1.69%.
Other financial stocks are also falling, including Jeju Bank (-1.26%), BNK Financial Group (-1.59%), KB Financial Group (-1.12%), Woori Financial Group (-1.26%), and KakaoBank (-1.85%).
Credit Suisse recently announced that a 'material weakness' was found in its internal controls related to the accounting of its 2021 and 2022 annual financial statements.
Furthermore, the largest investor, Saudi National Bank (SNB), announced the day before that it would not provide additional financial support, causing the stock price to plummet.
On European stock markets, Credit Suisse’s shares fell more than 30% intraday, while other European bank stocks such as Barclays in the UK, Commerzbank in Germany, BNP Paribas and Soci?t? G?n?rale in France also dropped between 7% and 12%.
In the New York stock market, financial stocks including regional banks First Republic Bank (-21.37%) and PacWest Bancorp (-12.37%), as well as JP Morgan Chase (-4.72%), Morgan Stanley (-5.09%), Citigroup (-5.44%), and Goldman Sachs (-3.09%) also declined.
Han Ji-young, a researcher at Kiwoom Securities, analyzed, "In a situation where the aftershocks of the Silicon Valley Bank (SVB) crisis have not yet subsided, the emergence of a crisis at a major European bank with greater symbolism than SVB has further intensified concerns about liquidity instability in the banking sector."
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