Reuters: 'European bank stocks have lost more than a fifth of their value over the past month amid the Ukraine crisis.
'Western sanctions against Russia following its invasion of Ukraine have upended the financial sector, but the main hit to banks are the threats to the global economic outlook and the prospect of higher interest rates.
'Investors worry banks will again need to hike loan loss provisions, which had been declining after the pandemic-driven spike in 2020. The crisis is also reducing the chances of higher interest rates, which would have boosted income from lending...'
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