Banking crisis continues: What's up (and down) with ASX 200 bank shares today?

Plenty of eyes have been fastened on the banking sector on Friday.

A middle-aged woman sits in contemplation over a tablet device considering information about ASX shares and deep in thought.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX 200 banks have put on a mixed and wobbly performance today 
  • It comes as the crisis among US regional banks continued last night, with regulators reportedly stepping in to halt trade of PacWest and Western Alliance stock
  • It comes just days after First Republic Bank was seized by regulators and sold to JP Morgan Chase

S&P/ASX 200 Index (ASX: XJO) bank shares are putting on a mixed performance on Friday after the banking crisis taking major markets by storm continued overnight.

Stock in United States (US) regional banks PacWest Bancorp (NASDAQ: PACW) and Western Alliance Bancorporation (NYSE: WAL) plummeted 51% and 38% respectively overnight, with regulators stepping in to halt trade in the pair, the Guardian reports.

They're suffering follows the collapse of US peers Silicon Valley Bank and Signature Bank in March. Not to mention, the Swiss government-brokered deal for UBS to acquire Credit Suisse before it crumbled.  

But that's not all that's going on with ASX 200 bank shares on Friday.

Stock in two majors, ANZ Group Holdings Ltd (ASX: ANZ) and Macquarie Group Ltd (ASX: MQG) moved in opposite directions after both banks released earnings earlier today.

Let's dive into all that's going on with ASX 200 bank shares today.

ASX 200 bank shares a mixed bag on Friday

ASX 200 bank shares are putting forward mixed performances on Friday. Take a look:

For comparison, the ASX 200 is up 0.14% right now while the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 0.29%.

US banking crisis continues

It's been a big week of potentially worrying news from the US banking sector, culminating in more regulatory action overnight. Many commentators warn the continued slate of bank collapses could be an early sign of recession in the globe's largest economy.

Earlier this week, First Republic Bank became the US' second largest bank failure in history when regulators took control, selling the bank to JP Morgan Chase, BBC News reports.

It was a similar story as that of numerous recent collapses – including Silicon Valley Bank. Our chief investment officer Scott Phillips explained that collapse in detail at the time.

Overnight, PacWest's share price crumbled after the bank confirmed it's exploring strategic options, including a sale, with several partners and investors in the wings. Though, it also noted it hasn't experienced any out-of-the-ordinary deposit flows.

Meanwhile, rumours Western Alliance was also considering a sale were emphatically shot down.

The bank said reports touting the claims were "categorically false in all respects" and it's considering its legal options.

Despite both banks denying they're close to joining First Republic Bank in receivership, market watchers may remain unconvinced given the shocking fall in their share prices. Find their recent performances – not including their overnight falls – below:

What would the banking crisis mean for ASX 200 shares?

Fortunately, ASX 200 bank shares have been found to be the world's most capitalised.

Thus, it's unlikely our market favourites will be dragged into the drama currently happening in the US.

However, as the saying goes: 'When America sneezes, the world catches a cold'.

It's likely that, if the US were to fall into a recession, Australia – and the ASX 200 – would be impacted to some degree.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Western Alliance Bancorporation. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Bank Shares

Are Westpac shares a buy following the bank's big tech update?

Is now a good time to buy the banking giant's shares? Let's find out.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Bank Shares

Own CBA shares? It's payday for you!

A dividend is heading to CBA shareholders’ bank accounts.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Are CBA shares really worth $120?

It has been a good year for ASX bank shareholders.

Read more »

a group of people sit around a computer in an office environment.
Bank Shares

Westpac shares push higher on $9.8b technology simplification plan

Westpac plans to spend big on technology to close the gap on its rivals.

Read more »

A worried woman looks at her phone and laptop, seeking ways to tighten her belt against inflation.
Economy

NAB boss issues dire prediction for Aussie economy

NAB’s CEO has issued a stark warning on the outlook for Australia’s economic growth.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Bank Shares

ANZ shares charge higher on $57.5 million class action settlement news

ANZ shares have continued their positive run on Monday.

Read more »

Two people comparing and analysing material.
Bank Shares

Better buy: CBA or Westpac stock?

Which ASX bank share is a better buy?

Read more »