The shares of Credit Suisse and Deutsche Bank are being ditched from a benchmark index after substantial losses.
Credit Suisse (CS) and Deutsche Bank shares will drop out of the Stoxx Europe 50 Index as of August 8, Stoxx said in a statement on Monday.
The removal of the Swiss bank's stock, predicted by analysts last month, means French construction company Vinci and ASML, a Dutch technology company, will be added to the index operator's benchmark instead.
Fast-Exit Rule
The changes are due to the so-called fast-exit rule. It states that components of the Stoxx Europe 50 Index are deleted if a stock ranks 75 or below for two months running. The deleted component is replaced by the highest-ranking non-component on the monthly selection list.
The move comes as little surprise to analysts after the stocks of the two banks suffered substantial declines following unsatisfactory quarterly figures and the Brexit vote.
Portfolio Changes
CS has declined 46 percent since the start of the year and Deutsche Bank dropped 48 percent.
The changes are mainly important for funds, who mirror the composition of indexes and therefore have to adapt their portfolios.
