On Monday, the Dax extended its losses from last week. The banking sector remains a concern for investors. The possible consequences of the collapse of Silicon Valley Bank (SVB) in the USA are currently being weighed, said a stock market expert. In the morning, the German benchmark index fell by 2.9 percent to 14,984 points. The M-Dax lost 3.2 percent to 27,100 points. The leading eurozone index EuroStoxx 50 fell by 2.9 percent to 4105 points.

Deutsche Bank's share price fell by a further 6.0 percent after losing a good 7 percent on Friday. Commerzbank shares plunged 11.4 percent after falling 2.6 percent on Friday. Bank shares were under pressure across Europe, with the Stoxx banking index plummeting by 8 percent. In Zurich, the shares of crisis-ridden Credit Suisse fell by 8.7 percent to a new record low of 2.28 francs. UBS shares fell by 3.5 percent. the banking index fell by 3.9 percent.

The securing of all deposits by the US authorities, after the faltering American start-up financing bank SVB and the New York-based Signature Bank had to be closed, has not yet provided the hoped-for calm on the stock markets. "But it also shows how seriously the US Federal Reserve, the FDIC protection fund and the Treasury Department take the case," said portfolio manager Thomas Altmann of trading house QC Partners. "The big and crucial question now is how many banks will follow." Even before the weekend, SVB, which specialises in start-up financing, had been temporarily closed and placed under state control after a failed emergency capital increase.

At the weekend, the Ministry of Finance, the central bank and the deposit insurance authority had declared that deposits with the SVB and another institution would be protected. The US Federal Reserve also launched a new lending program to provide banks with liquidity.

Economists at US bank Goldman Sachs, led by Jan Hatzius, also expect recent events in the US banking system to prompt the Fed to pause its monetary tightening cycle next week. They also referred to the uncertainty about further interest rate hikes in the coming months. Concerns about the US banking system also pushed Japanese stock markets into the red on Monday. The Tokyo Nikkei index, which comprises 225 stocks, closed 1.1 percent lower at 27,833 points. The broader Topix index fell by 1.5 percent to 2001 points.

However, the protection of all deposits by the US Federal Reserve, the FDIC protection fund and the Treasury should stabilize investors over the long term, analysts said. "Stocks are likely to return to previous levels by Tuesday," said strategist Kazuo Kamitani of Japanese investment bank Nomura.