European bank shares extend losses

European bank shares extended their losses today, forcing the sector to perform a consecutive sharp drop within a period of two days.

Britain's impact, amid the referendum’s outcome, placed strong pressures to the regional banks that are now facing low returns, an increase in non-performing loans, and higher cost with regards to regulatory matters.

European banking index drops more than 5%

On Monday, the regional banking index dropped far greater than 5% since the euro zone's debt crisis back in 2011.

The STOXX Europe 600 Insurance index approached its weakest level since 2013, dropping 4% in total.

Intesa declined 7.6 percent while UniCredit fell 7.2%. In the U.K, Barclays and Royal Bank of Scotland's shares decelerated by more than 10%, following the high volatility in place after the referendum's results.

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