Asian bank stocks tumble as US systemic concerns prevail

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Shares of banks in Asia slumped on Monday after the collapse of a U.S. startup-focused bank sparked a global flight to quality on fears of broader systemic risk, even as authorities tried to stem the contagion with steps to placate depositors.

In Hong Kong, shares of HSBC Holdings opened roughly 1.7% lower at a two-month trough while Standard Chartered Bank shares fell nearly 1% to a one-month low.over $100 billion in stock market value late last week following the collapse, while European banks lost around another $50 billion in value, according to a Reuters calculation.

"The Fed are not only addressing concerns over the bank's asset side of the balance sheet but on the liability side, where they are essentially stepping in front of a larger bank run, which...can be devastatingly swift to bring down any institution," said Chris Weston, head of research at Pepperstone.

"There's likely going to be further migrations to the stronger banks and those with a large asset base and low equity will continue to see depositors divest capital."

 

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shorebreak415

Just players in the market doing what they do in the hope of making a profit at everyone else's expense?

itshappening the RunOnTheBanks gets underway as Asian markets give their verdict on the 'nothing to see here' attitude of western finance ministers despite observable evidence to the contrary.

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