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The New Daily
The New Daily
World
Howard Schneider, Aniruddha Ghosh and John Revill

European bank shares fall as crisis leaves mark

Citigroup has downgraded Europe's banking sector amid the rapid pace of interest rate hikes. Photo: EPA

Banking shares have slipped in Europe as the instability that surged through the global banking system prompts investors to adjust to more challenging economic and lending conditions ahead.

The Federal Reserve on Wednesday indicated it was on the verge of pausing further increases in borrowing costs after the collapse of two United States lenders earlier this month triggered worries of contagion throughout the banking system.

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