Shares in European and US banks have fallen sharply causing concerns of a new financial crisis, as regulators attempt to ease investor fears about the stability of banking giants like Credit Suisse.
Saudi National Bank, Credit Suisse's largest shareholder, has ruled out additional financial injections, leading to a 20% drop in its share price.
Credit Suisse, which is regarded as systemically important to the global financial system, was dealt a severe blow after its top investor withdrew additional funding due to regulatory limits on ownership.
The failure of Silicon Valley Bank has raised fears of a widespread global banking crisis as its collapse prompted share prices to plummet across the board.
Subsequent events, particularly the announcement by Saudi National Bank that it would not inject any more cash into Credit Suisse, pushed already fragile stock prices lower, highlighting once again the fragility of the global banking structure's status.
Regulators have attempted to step in and calm investor fears, with particular emphasis being placed on the fact that Credit Suisse is considered "a very strong bank.
" Still, with banks becoming ever-more intertwined and reliant upon each other, events such as this, no matter how they develop, have a potential ripple effect across the entire sector.