The world's bank stocks price in 'Armageddon' as buyers flee

IF the world's banks are in much better shape this time round, it's little consolation for their shareholders nursing historic losses.

As the novel coronavirus pandemic sparks corporate defaults, interest rate cuts and trading losses, investors have been punishing the sector with an intensity reminiscent of the global financial crisis.

Developed bank equities have plunged to a record low versus the wider market. US lenders have sunk below 2008 levels compared with their large-cap peers. Institutions in the eurozone have traded at a 70 per cent discount to book value - worse than the dark days of the euro debt debacle.