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UK bank stocks plunge 4.5% as 30-year borrowing costs hit 1998 high

  • UK bank shares fell as rising borrowing costs intensified concerns about Britain’s finances.
  • The FTSE 350 banks index dropped 4.5%, its largest one-day decline since May 5.
  • Major lenders’ chiefs were reportedly summoned to meet finance minister John Healey next week.

UK bank stocks fell sharply as Britain’s 30-year borrowing costs reached their highest level since 1998, intensifying concerns about public finances, high oil prices and inflation before the Oct. 28 budget. The FTSE 350 banks index dropped 4.5%, its biggest one-day decline since May 5, while NatWest, HSBC, Barclays and Lloyds all posted losses of 4% or more. Bank shares also declined across Europe as government bond selling pushed yields to multiyear highs, which can pressure lenders’ profitability. The decline accelerated after Sky News reported that the heads of major British lenders, including Barclays, HSBC and Lloyds, had been summoned to meet finance minister John Healey the following week amid expectations of possible bank taxes in the Autumn Budget.

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UK bank stocks plunge 4.5% as 30-year borrowing costs hit 1998 high - CoinPost Terminal