Global Bank Stock Crash: Fear of bank scam in America spreads across the world, millions of crores of rupees lost!:

News Topical, Digital Desk : News of bad loans and fraud disclosures by some US banks has spread panic among investors. This panic has now reached global stock markets, and the banking sector is experiencing a major decline. Rumors, fear, and anxiety have combined to result in losses worth millions and crores of rupees. Zions Bancorporation reported a loss of approximately $50 million on two lending transactions. Following this, Zions' shares fell by approximately 12-13%. Western Alliance reported initiating fraud proceedings, and its shares also fell by 10-11%. The SPDR S&P Regional Banking ETF (KRE), which covers several US regional banks, fell by 5-7%. The banking sector in Europe declined by approximately 3%.

The decline started from America - On Thursday, two big banks in America, Zions Bancorporation and Western Alliance Bancorp, disclosed bad loans. Zions reported a loan loss of about $50 million and Western Alliance accused a borrower of fraud. After this, investors started withdrawing money from the banking sector. Zions' share fell by about 13% and Western Alliance's share fell by more than 10%.

The banking sector index SPDR S&P Regional Banking ETF (KRE) also declined by more than 6%. This means that investors' confidence in America's regional banks has started to waver.

Impact in Europe and Asia: The fall in the US also affected markets in Europe and Asia. Europe's Stoxx Banking Index fell nearly 3%. Spain's Sabadell Bank fell 8.9%. Germany's Deutsche Bank fell 6.9%. Britain's Barclays Bank also fell 5.4%. The situation in Asia was also not good. Shares of Japan's Mizuho Financial Group fell 4%. Insurance company Sompo Holdings fell 4.7% and Tokio Marine fell 3.5%. HSBC's Hong Kong shares also fell nearly 2%. Russ Mould, investment director at AJ Bell, says investors are beginning to wonder why so many banks are experiencing problems so quickly. Is this the result of poor risk management and weak credit policies? He said that while there hasn't been a major crisis in British and European banks, whenever "bad news" comes from anywhere, investors panic and distance themselves from the sector. David Barker of GAM Investment said that the problem hasn't yet penetrated deeply into the system, meaning it's not a major global crisis. He added that European banks have significantly strengthened their balance sheets over the past 10 years, and this decline could only last a few days if no new irregularities are discovered. JP Morgan CEO Jamie Dimon said, "When you see one cockroach , there are more ." He warned that these bad loan incidents are likely just the beginning. Dimon also noted that instances of double pledges or fake collateral are also emerging in some companies, which could lead to further losses.

What's next? All eyes are now on how US and European regulators handle this situation. If more bad loans emerge in the coming weeks, the decline won't be limited to stocks but could put pressure on the entire banking system. The biggest question for investors right now is whether this is a temporary blip or the beginning of a major crisis. Crores lost!