Why the Australia and New Zealand Banking Group share price was hammered today

The Australia and New Zealand Banking Group (ASX: ANZ) share price is taking a beating today following an announcement it made to the market early this morning.

The share price has fallen 4.9% today to trade at $24.09, while it has now lost a little over 8% since the beginning of the week.

Source: Yahoo! Finance

Source: Yahoo! Finance

Notably, shares of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) have also lost between 2.1% and 3.6% today.

The heavy losses have come after ANZ Bank warned that its total bad debt charges for this half of financial year 2016 will rise by an additional $100 million. This is mostly due to its exposure to the resources sector, with Commonwealth Bank also heavily exposed.

The worrying thing isn’t necessarily the $100 million in additional charges (at least not for a bank the size of ANZ). The problem is more so that analysts fear this could mark the beginning of a trend for the sector as a whole.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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