Shares in European banks sank on Monday despite a buyout of Credit Suisse by Swiss lender UBS aimed at averting a global banking crisis.

The Stoxx Europe 600 Banks index for the sector was down more than 5% in morning trades, with declines at French behemoths BNP Paribas and Societe Generale of around 7% and Standard Chartered of about 5%.

Concurrently, shares in Deutsche Bank decreased by more than 10% on Friday as the price of insurance against default risk rose, adding to concerns about a banking sector crisis.

Around 1000 GMT, they were down 11.5% at 8.26 euros, marking the third straight session of declines in Frankfurt for Germany's biggest lender. Commerzbank's domestic rival's stock fell 8.5%.

The big picture

The crisis began with two mid-size lenders - SVB and Signature Bank - being taken over by Californian regulators. SVB is considered the second largest bank failure in history, whereas Signature Bank is viewed as the third.

Another bank, First Republic, also found itself in hot water despite it received a $30 billion cash infusion from a consortium of banks.

The crisis has spread to other banks in Europe, including Credit Suisse, which announced it was taking a $53.7 billion loan from the Swiss central bank in a bid to "pre-emptively strengthen its liquidity" a day after stock prices fell by a huge margin as it struggles to nip in the bud a confidence crisis.

After weekend intense talks aimed at preventing a wider international banking crisis, UBS announced it was ready to take over Swiss rival Credit Suisse for $3.25 billion.

Read more: SVB crash a lesson and reminder for Asia to distrust US financing