Australian banks are getting hammered

Joerg Koch/Getty Images

Shares in Australian banks dropped hard.

Investors followed markets in Europe where the banking sector was hit after Commerzbank warned about negative interest rates shaving profits. The European Banking index fell 3.4%.

A short time ago, Westpac had lost 2.15% to $30.18, the Commonwealth 1.5% to $76.38, the NAB 2.18% to $26.01 and the ANZ 1.9% to $25.24.

The local market was heading to its second day of falls. A short time ago, the ASX 200 was at 5,478.30, down 62.24 points or 1.12%.

The ASX 200 dropped 0.84% on Tuesday.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.