USA: Shares in European banks fell sharply on Wednesday as the US banking crisis intensified.

Trading had to be suspended for several bank stocks, including Credit Suisse, due to significant losses. In afternoon trading, the major Swiss bank fell 28%, while Societe Generale, which temporarily halted trading, fell 12%.

Shares of the troubled Swiss bank fell to another record low for the second day in a row on Wednesday, after its biggest investor, the Saudi National Bank, announced that it would be unable to continue providing financial support due to regulatory limits.

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The investment bank's share price fell below two Swiss francs ($2.17) for the first time on Wednesday morning, halting much trading.

With several US banking failures still major, the collapse of Credit Suisse has resulted in increased concern about the stability of the European banking sector. Commerzbank fell 8.9%, BNP Paribas fell 10.7% and Deutsche Bank fell 7.8%.

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The banking crisis has reportedly taken another "ominous turn", according to economists.

According to Susannah Streeter, head of money and markets at Hargreaves Lansdowne, "the concern is that banks may not have sufficient buffers sitting on large unrealized losses in their bond portfolios if there is a rapid withdrawal of deposits.

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Robert Kiyosaki, a renowned economist who predicted the demise of Lehman Brothers in 2008, previously issued a warning that Credit Suisse would follow many US banks in failing.