UK banks hardest hit by credit crunch. - Since the start of 2008, EU banks have lost 32.1% in value on the stock exchange, according to French business newspaper Les Echos. After a rise early in May 2008, the market has become distinctly bearish due to the continued rise in oil prices, inflation and the prospect of a hike in interest rates. The biggest slumps in share price in 2008 were all recorded at UK banks and building societies: Alliance & Leicester (-54%), HBOS (-63%) and Bradford & Bingley (-76%). No less than five UK banks are listed in the top ten of slumps in bank share prices. After banks in the United States, British banks have been the most directly hit by the mortgage crisis and lack of consumer confidence, as shown by the collapse of Northern Rock, suffering from a general lack of funds. Of all large EU banks, big British names like the Royal Bank of Scotland (-43%) and Barclays (-40%) feature among the worst performers on the stock exchanges. Recent attempts to increase cash reserves have not met expectations and the recent raising of £4.5 billion by Barclays was judged insufficient. Only Natexis (-44%), Dexia (-40%), Fortis (-40%) and Société Générale (-41%) have seen such a slump in their share value over six months (for various reasons). The best performing banks are HSBC (valued on the stock exchange at €119.191 billion), Santander (€73.3 billion) and BNP Paribas (€52.834 billion). (I.L./transl.fl)