Deutsche Bank shares see biggest slump in three years amid European banking turmoil 

Steep drops in bank shares undermine hopes among authorities that the rescue of Credit Suisse last weekend would stabilise the broader sector

Deutsche Bank shares have slumped as much as 15% — the biggest decline since March 2020. 

Deutsche Bank has become the latest focus of European banking turmoil as its shares see the biggest slump in three years as the cost of insuring against default increases.

The bank, which has staged a recovery in recent years after a series of crises, said on Friday it would redeem a tier-two subordinated bond early. Such moves are usually intended to give investors confidence in the strength of the balance sheet, though the share price reaction suggests the message is not getting through.