August 13, 2018 / 7:31 AM / 2 months ago

European bank stocks lose more ground as concerns over Turkey persist

PARIS, Aug 13 (Reuters) - Shares in Europe’s major banks lost further ground on Monday, with traders citing persistent concerns over Turkey’s currency crisis as among the main reasons for the hit to the sector.

The euro zone banking equity index was down 1.2 percent, hovering near its lowest level since late June and falling for the fourth session in a row.

Turkey’s lira pulled back from an overnight record low of 7.24 to the dollar on Monday after the central bank pledged to provide liquidity and cut lira and foreign currency reserve requirements for Turkish banks.

Nevertheless, Turkish banks’ dollar bonds fell, and the shares of European banks with business interests in Turkey - such as UniCredit, BNP Paribas, BBVA and ING - also weakened.

Deutsche Bank shares also fell after Bank of America Merrill Lynch downgraded the stock to “underperform”. (Reporting by Sudip Kar-Gupta and Thyagaraju Adinarayan, Editing by Helen Reid)

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