hares in Deutsche Bank Shares fell heavily on Friday on the lender’s surging cost of default cover, reigniting fears about a widening banking sector crisis.
Germany’s biggest lender dropped more than 14 percent on the Frankfurt Stock Exchange in early trade, before clawing back ground to close 8.5 percent lower, at 8.54 euros.
Long-troubled Deutsche Bank has become the focus of investor concerns after the collapse of three regional US lenders and the enforced takeover of Credit Suisse by rival UBS triggered market turmoil earlier this month.
Deutsche’s cross-town rival Commerzbank also fared poorly, dropping 8.5 percent in early trade, before winning back ground to close 5.45 percent off at 8.88 euros.
The German banks led falls among lenders across Europe, with Societe Generale and BNP Paribas in Paris, and several banks in London among those tumbling.
German Chancellor Olaf Scholz however offered reassurances about Deutsche Bank, saying the lender had “modernised and organised the way it works. It’s a very profitable bank. There is no reason to be concerned”.