Global financial stocks fell on Friday due to concerns about mounting risks and credit quality, triggered by a selloff in U.S. regional banking shares. European banks dropped 2.5%, with Deutsche Bank falling 4% and Barclays down over 2%. Citigroup shares fell 1% and 3% in Frankfurt, while JPMorgan shares tumbled 3%.

Japanese banks and insurers also sank, with Tokio Marine, Mizuho, and Mitsubishi UFJ Financial Group all down nearly 3%. Australian insurer QBE dropped 9%. The U.S. regional banking index slumped 6% on Thursday as two small banks disclosed separate issues, including a $50 million loss by Zions Bancorporation.

Analysts drew parallels between recent bank disclosures and previous collapses, highlighting concerns about credit market transparency. The collapse of auto parts maker First Brands raised questions about lenders’ oversight. CEO Jamie Dimon’s comments on anxiety in the credit market following recent bankruptcies have added to investor concerns.

Investors are wary of a potential repeat of the 2023-style event triggered by Silicon Valley Bank’s failure. With valuations already high across equity markets, nervous investors are closely monitoring bank shares. European bank shares remain 40% year-to-date. The market is on edge amid fears of a possible banking stocks rout.

Read more at Yahoo Finance: Banking stocks slide as US credit worries jolt investors