Europe banks lose 40b euros in value as Greece shuts lenders

Milan

EUROPEAN banks slumped the most since 2011, erasing more than 40 billion euros (S$60 billion) in market value, after Greece imposed capital controls and shut lenders.

The Stoxx 600 Banks Index fell as much as 4.4 per cent, the biggest intraday decline since November 2011, with all 46 members declining. Lenders in Italy, Portugal and Spain were among the biggest decliners, led by Banco Comercial Portugues.

Greece shut its banks and imposed capital controls to help avert the collapse of its financial system amid increasing concerns it will be forced out of the euro area. Banks will be closed at least unti…