March reading of 13.0 vs expected 17.1
Ends fivemonth streak of increases
Uncertainty over banks reflected in dip

BERLIN, March 21 Reuters German investor sentiment tumbled in March as concerns about a new financial crisis ended a fivemonth streak of consecutive increases, the ZEW economic research institute said on Tuesday.

The institute39;s index assessing the outlook for the economy over the next six months fell by 15.1 points to a reading of 13.0 in March, below the 17.1 forecast of analysts polled by Reuters.

The international financial markets are under strong pressure, and the high level of uncertainty is reflected in the economic expectations, said ZEW President Achim Wambach.

The market spillover from the collapse of U.S. midsized lenders Silicon Valley Bank SVB and Signature Bank this month triggered the demise of 167yearold Credit Suisse, and investors are concerned about potential bombs ticking elsewhere in the financial system.

Investors39; concerns about banking sector turbulence weighing on the economy are not unjustified, said VP Bank chief economist Thomas Gitzel. The focus is less on the fear of further bank failures than on the question of whether banks on both sides of the Atlantic will now become even more restrictive, he said.

Hauck Aufhaeuser Lampe private bank chief economist Alexander Krueger downplayed the drop in expectations as an obvious reaction to recent developments. If the bank worries are not confirmed, there is great potential…