Germany’s largest bank has become the focus in a new wave of selling across banking and wider financial stocks, less than a week after the forced takeover of Credit Suisse.

Deutsche Bank shares were down 11% on the day at one stage, in volatile trading, after a sharp jump in the cost of insuring against the risk of default.

Markets have been jittery for weeks in the wake of the failure of Silicon Valley Bank in the US.

Fears about the impact of rising interest rates on banks’ bondholdings have since claimed a major scalp in Credit Suisse, Switzerland’s second-largest bank.

It was forced by regulators into a takeover by larger rival UBS last weekend, before financial markets opened for business on Monday.

It took until Friday – just ahead of the weekend break – for a new focus to emerge.

Chris Beauchamp, chief market analyst at IG, said: “We are still on edge waiting for another domino to fall, and Deutsche is clearly the next one on everyone’s minds (fairly or unfairly).

“Looks like the banking crisis hasn’t been entirely put to bed,” he wrote.

Banking stocks were down across the board in Europe with the FTSE 100 trading 2% down in London, led lower by its constituent banks.

Wider economy stocks – such as mining and energy shares – also declined on fears the crisis of confidence in the banking sector would curtail the availability of credit.