Bank shares in Asia and Europe have slumped, despite reassurances from the US president that America’s financial system is safe following the collapse of two US lenders.
The falls come after authorities moved to protect customer deposits when the US-based Silicon Valley Bank (SVB) and Signature Bank collapsed.
Joe Biden promised to do “whatever is needed” to protect the banking system.
But investors fear other lenders may still be hit by the fallout.
Tuesday trading saw sharp falls in share prices globally, with Japan’s Topix Banks index falling by more than 7%, putting it on course for its worst day in more than three years.
Shares of Mitsubishi UFJ Financial Group, the country’s largest lender by assets, were down by 8.1% in mid-day Asian trading.
On Monday, Spain’s Santander and Germany’s Commerzbank saw their share prices dive by more than 10% at one point.
A string of smaller US banks suffered even worse losses than European counterparts, despite reassuring customers that they had more than enough liquidity to protect themselves from shocks.
The volatility has led to speculation that America’s Federal Reserve will now pause its plans to keep raising interest rates, designed to tame inflation.
Mr Biden said that people and businesses that had deposited money with Silicon Valley Bank would be able to access all their cash from Monday, after the government stepped in to protect their deposits in full.
Many business customers had faced the prospect of not being able to pay staff and suppliers after their funds were frozen.
BBC North America Technology correspondent James Clayton spoke to people queuing up all day outside the SVB branch in Menlo Park, California, to access their funds.
As the bank was no longer offering wire transfers, they were taking out their money in cashier cheques. BBC News