European banks fell sharply on the stock markets on Friday. In Amsterdam, ING and ABN AMRO, among others, were hit. Investors fear that the problems at US bank SVB Financial Group, a Silicon Valley-based lender, will spill over to other larger banks.
Many small banks such as SVB took out loans when interest rates were still very low. Now that interest rates are rising rapidly, they are in danger of getting into trouble and are having trouble refinancing the loans. Other, smaller US banks also lost heavily on Wall Street on Friday.
At the same time, US regulators state that there is no risk of larger banks failing. Financial regulators are also keeping an eye on matters in the United Kingdom and Germany. SVB has subsidiaries in those countries. But SVB UK states that it operates completely separately and is financially separate from the parent company.
On the Damrak, the banks ING and ABN AMRO were lowered by 4.8 and 3 percent respectively on Friday. The insurers Aegon, NN Group and ASR also went down and lost almost 5 percent. Payment company Adyen fell 3.2 percent. Other large European banks such as HSBC, UBS, BNP Paribas, Commerzbank, Santander and Deutsche Bank plummet to more than 7 percent.
Due to the losses in the financial sector, the AEX index on Beursplein 5 closed 1.6 percent in the red at 741.30 points. The MidKap lost 1.7 percent to 991.74 points. The stock markets in Frankfurt, London and Paris fell to 1.8 percent.
Two risers AEX
Broadcasting company Randstad and supermarket group Ahold Delhaize were the only risers in the AEX with gains of 2.3 and 0.3 percent. The chip companies ASML and Besi fell to 1.3 percent. Industry peer ASMI (minus 1.8 percent) was also in the spotlight. According to the Bloomberg news agency, several investment companies are interested in taking the Hong Kong-listed chip company ASMPT, in which ASMI has an interest of about 25 percent, off the stock exchange.
The dollar fell against the euro due to uncertainty in the banking sector. The European single currency was worth $1.0664, against $1.0581 the day before. Oil became much more expensive. A barrel of US oil cost 1.7 percent more at $ 77. Brent oil traded for $82.95 a barrel, a price increase of 1.7 percent.