European banks are going into the weekend with renewed fears surrounding their future, as shares of Deutsche Bank (ETR:DBKGn) plunged over 7% on the New York Stock Exchange on March 24, after a down day on Frankfurt's markets.
Deutsche Bank shares were impacted by an increase in the cost of insuring against its potential default risk. The German bank's five-year credit default swaps, known as CDS, climbed 19 basis points (bps) from the previous day, closing at 222 bps, according to Reuters, which cited S&P Global Market Intelligence data. On March 23, the bank's CDS rose to 173 bps from 142 bps the previous day.