LUSA 10/18/2025

Lusa - Business News - Portugal: Fears over US regional banks spread to European stock markets

Lisbon, Oct, 17, 2025 (Lusa) - The European banking sector has reflected on the stock exchange the doubts about some regional banks in the United States of America over bad loans, with several banks registering losses in today's session, analysts say.

Around an hour after the opening bell in Germany, Deutsche Bank and Commerzbank were losing 5.72% and 2.83% respectively, while Britain's Barclays was down 5.66%.

In Paris, Société Générale was down 4.64% and BNP Paribas 3.55%, while in Italy Unicredit was down 2.86%.

On the Lisbon stock market, BCP was down 2.84%, and Santander was down 4.07% in Madrid.

Bankinter analysts quoted by Efe explained on Friday that these falls represent a contamination of the reductions suffered by the shares of some US regional banks, partly due to concerns about bad loans.

The analysts note that Zions Bancorp and Western Alliance expect large losses in their accounts, after two funds to which they had lent more than $150 million (€128 million) incurred irregularities.

"Amid concerns about the growing credit risks in the sector, the information has left investors uneasy," they pointed out.

The same analysts point out that these circumstances led to the KBW Regional Banking Index, which includes 50 smaller banks in the United States, closing Thursday's session down 6.3% - the lowest level since June and the largest daily decline since April.

These trends come days after the closure of the Tricolor Holdings car loan institution, which led JP Morgan Chase to take losses of $170 million in the third quarter.

JO/ADB // ADB.

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