A Flare-up in Europe's debt crisis has sent the sharemarket to its second-largest sell-off in nine months as investors fret about a run on European banks.
After a bull run for local stocks since June in a period of relative calm in Europe, a bearish mood swamped Asian markets yesterday after analysts warned that Cyprus's proposed levy on bank accounts could lead to bank runs in bigger eurozone economies, including Greece and Spain.
Cyprus at the weekend became the fifth eurozone nation to seek support after agreeing with European officials to a bailout program, including a tax of 9.9 per cent on deposits in excess of E100,000 ($124,950) and 6.75 per cent on small depositors.
Bendigo and Adelaide Bank's Delphi Bank, previously the Bank of Cyprus Australia, said there would be no impact on customers after the local Cypriot community expressed concern.
