GLOBAL MARKET : EUROZONE BANKING CRISIS FEARS RETURN AS GOVERNMENT BORROWING COSTS SURGE

What happened: Eurozone banking crisis fears have returned as government borrowing costs surge, with concerns centred on the close relationship between banks and their home governments. Key numbers: European banking stocks fell around 10% over the past six weeks, roughly five times the broader market decline, Why it matters: Analysts told Reuters banks are better equipped than in the 2010s but remain vulnerable to deteriorating public finances and investor sentiment. Higher sovereign yields could raise wholesale funding costs, with French banks the EU's largest wholesale debt issuers.

Eurozone banking crisis fears have returned as government borrowing costs surge, with concerns centred on the close relationship between banks and their home governments.

Analysts told Reuters banks are better equipped than in the 2010s but remain vulnerable to deteriorating public finances and investor sentiment. Higher sovereign yields could raise wholesale funding costs, with French banks the EU's largest wholesale debt issuers.