The European Central Bank (ECB) holds an emergency meeting this Friday. An extraordinary meeting of the Board of Supervisors to discuss the turmoil in the US banking sector.
The ECB “is meeting to exchange views and inform members about recent developments in the banking sector,” a spokesman was quoted as saying by German media.
Earlier this week, the ECB had an unscheduled meeting to discuss the fallout from the failure of Silicon Valley Bank and Signature Bank. Two American banks whose failure brought to mind what happened in 2008, when Lehman Brothers. In Europe, it was the problems with Credit Suisse that rocked the markets.
At that time, the situation calmed down after a capital injection worth 50 billion Swiss francs, made by the Swiss Central Bank.
Now, in the US, First Republic Bank found itself in a difficult situation as its clients withdrew a large part of their deposits, raising concerns after the collapse of Silicon Valley Bank and Signature Bank.
There are fears of contagion and a confidence crisis that could lead to deposit withdrawals, which could drag down other banks.
European banks are posting different trends, with Swiss bank UBS falling 0.81%. In France, Société Générale cut profits and rose 2.24% and BNP Paribas fell 0.34%, while in Germany, Commerzbank rose 0.23% and Deutsche Bank fell 1.76%.
In the UK, HSBC was up 2.07% while Barclays was down 1%. In Lisbon, the stock market also reversed the trend, with the PSI falling 2.28% to 5,732.10 points, with the BCP falling 3.01% to 0.19 euros.
Source: TSF
