Banks across the eurozone are resilient, stable and strong, European Union leaders insisted on Friday at the end of a two-day summit in Brussels, Ednews reports citing Euronews.
But their words stood in stark contrast with the harsh reality of the financial markets, where Deutsche Bank, Germany's largest lender, was suffering a precipitous decline in value, with its shares plunging by almost 15% during Friday's trading.
The fall was credited to a rise in credit default swaps (CDSs), which reflect the insurance costs against a possible default on a bank's debt.
Other European banks, including UBS, Commerzbank, Société Générale and BNP Paribas, were also affected by the turbulence, although to a lesser extent.
Financial markets have been rocked by persistent turmoil since the collapse of Silicon Valley Bank, the biggest American bank to fall since 2008, and the government-brokered takeover of Credit Suisse earlier this month.
