Down 10% in a month, what’s going on with the Bank of Queensland share price?

The Bank of Queensland Ltd (ASX: BOQ) share price is in the red once more today, bringing its losses for the last month to 10%.

Right now, stock in the S&P/ASX 200 Index (ASX: XJO) regional bank is swapping hands at $6.37. That’s 1.7% lower than its previous close.

For comparison, the ASX 200 is up 0.2% today and has slumped 3% over the last 30 days.

So, what appears to be going wrong for the Bank of Queensland share price in recent weeks? Much of its suffering might be a result of what some commentators have dubbed a banking crisis.

A brief look at the 2023 ‘banking crisis’

While the last month has been rough on the Bank of Queensland share price, it’s been even harder for other international banks.

United States’ Silicon Valley Bank collapsed earlier this month as a liquidity crisis unfolded within.

Our chief investment officer Scott Phillips covered this in far greater detail than I can here, but I’ll run through it as simply as I can.

It all kicked off as a result of rising rates, which eroded the value of bonds held by the banks. When depositors caught wind of this they moved to withdraw their cash and therein lay the spark.

The banks didn’t have all that much money in cash form. Cue a liquidity crunch.

Another liquidity crunch saw Signature Bank in the hands of regulators just days later.

Next we knew, a similar happening was occurring across the pond at Switzerland’s Credit Suisse. Fortunately, fellow Swiss banking giant UBS stepped in to save the day, agreeing to acquire Credit Suisse.

And before the dust had settled, there was news from Germany’s Deutsche Bank. The institution saw its share price tumble late last week amid concerns of the costs associated with insuring its bonds.

Of course, all this took its toll on many bank stocks around the globe, with those of regional lenders among the hardest hit.

What does this have to do with the Bank of Queensland share price?

Well, everything and nothing. None of our Aussie banks has been seriously caught up in the liquidity turmoil, but that’s unlikely to have stopped investor sentiment from tumbling, dragging share prices down with it.

Indeed, UBS has dropped its outlook for the Aussie banking sector in the wake of the chaos. Few ASX 200 banks were safe from the broker’s wrath as it underwent a series of downgrades today.

Though, Bank of Queensland shares appeared to take one of the hardest punches. The broker dropped its rating on the stock to sell while slashing the price target for its shares by 25% to $6, according to the Australian Financial Review.

Thus, the Bank of Queensland share price’s 10% tumble over the last 30 days might have a little, or a lot, to do with the broader international banking landscape.

The post Down 10% in a month, what’s going on with the Bank of Queensland share price? appeared first on The Motley Fool Australia.

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• Why are the smaller ASX 200 banks rebounding so strongly on Wednesday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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