UK bank stocks fell sharply on Thursday as Britain’s 30-year borrowing costs reached their highest level since 1998, reflecting heightened concerns about the country’s finances, exposure to elevated oil prices and inflation ahead of the October 28 budget. The FTSE 350 banks index fell 4.1%, its biggest one-day decline since May 5, while euro zone bank shares were down about 3%. NatWest dropped 5.2%, HSBC fell 4.3%, Lloyds lost 4.4% and Barclays declined nearly 4%. The sell-off spread across European banking shares as government bond prices fell and yields reached fresh multi-year highs. Losses in UK banks 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. The meeting came as expectations grew that the Autumn Budget could include taxes on banks. The Treasury declined to comment to Reuters.