Banks shares hit as investor nerves return

Banking stocks across Europe have fallen sharply as concerns about the sector’s financial strength return.

Deutsche Bank’s shares saw the biggest decline, down 13%, and there was also a sharp rise in the cost of insuring against losses on its debt.

Investors have already been startled by the collapse of two US banks and the rushed takeover of Swiss giant Credit Suisse by its competitor UBS.

Stock markets in London, Germany and France were all lower.

Other banks that posted sharp falls in shares included Germany’s Commerzbank, down 8%, and France’s Societe Generale, down 7%.

In the UK, Barclays and NatWest each lost about 6%.