Banking Sector Fear Spreads... Deutsche Bank Stock Plummets 10%

Concerns Rise as CDS Rates Surge
European Bank Stocks Plummet Sharply

Deutsche Bank's stock price plummeted more than 10% on the 24th (local time) due to a rise in credit default swaps (CDS) and other factors. This was driven by growing doubts about the stability of European banks.

According to foreign media reports on the day, Deutsche Bank's stock price fell for the third consecutive day. As a result, one-fifth of its market capitalization disappeared within a month. Deutsche Bank's CDS rate rose from 142 basis points to 173 basis points the previous day.

On the day, Deutsche Bank's stock price dropped 10.85% compared to the previous day on the Frankfurt Stock Exchange in Germany.

[Image source=Reuters Yonhap News]

Following the bankruptcy of Silicon Valley Bank in the United States and emergency support for Credit Suisse (CS), concerns among investors have grown that the banking sector crisis could spread. There are increasing worries that if the U.S. Federal Reserve (Fed) proceeds with additional tightening, the crisis could further expand among investors.

In addition to Deutsche Bank, major European banks such as Commerzbank, CS, Soci?t? G?n?rale, and UBS also saw their stock prices fall by more than 5%.