The Commonwealth Bank of Australia (ASX:CBA) share price has slumped $1.16 or 1.73 per cent to $65.87 as the ASX 200 index continues to decline.
CBA shares are now trading at their lowest level in over 5 years.
Source: The Capital Club
Rising US interest rates is sending shivers through the stock market as higher interest rates slow economic growth and by comparison, can also make bonds and term deposits look more attractive than shares.
In Monday trade, the ASX 200 index has slumped 78 points or 1.3 per cent to 5,818.
The CBA share price is now down almost 15 per cent so far in 2018 putting it well into correction territory.
Bank shares are under pressure after banking analyst Brett Le Mesurier put a $6 billion estimated price tag for future consumer refunds, reviews and litigation for problems uncovered during the banking royal commission, according to an article in the AFR.
CBA shares currently trade on a fully franked dividend yield of 6.5 per cent.