On Thursday, Asian banking stocks fell, pushing the wider markets lower as fears about global banking turmoil sparked by Credit Suisse's troubles.
The worst of the losses have been reduced by the news that the megabank, which is in financial trouble, has accepted the offer of financial assistance from the Swiss central bank.
According to the lender, it could borrow as much as 50 billion Swiss Francs ($53.7 million) from Swiss National Bank. Shareholders sent shares to Switzerland's second largest lender, sending them plummeting by up to 30% Wednesday.
The bank described the loan as a 'decisive step to pre-emptively increase its liquidity'
Japan's Topix Banks Index, which tracks Japanese lenders, fell as high as 6.4% during the morning session. The index then recovered some of its losses and traded 3.7% lower at the close. This week, the index has fallen more than 8%.
Standard Chartered (SCBFF), a Hong Kong bank, fell nearly 4%. HSBC Holdings dropped 2.5%. The local bank BOC Hong Kong fell 3.1%
South Korea's major lenders Shinhan Financial Group, and KB Financial Group saw their shares decline by 1.2% and 0.5%, respectively.
Clifford Bennett is chief economist at ACY Securities in Sydney, an online broker. He stated that there has been a "definite unravelling" of investor confidence in both the banking and tech sectors. He said that despite the bank's balance sheets, any bank can be impacted by investors or depositors losing their confidence.