LONDON, Nov 7 (Reuters) - A fall in the share prices of major European banks weighed on the region's stock markets on Friday, as earlier gains on European equity indexes fizzled out.
The pan-European FTSEurofirst 300 index pared its earlier gains to dip 0.1 percent lower to 1,350.65 points while the euro zone's Euro STOXX 50 index fell 0.6 percent.
The Euro STOXX Banks Index slid 1.7 percent lower.
Traders and analysts cited concerns about how the banks were lending out less due to the weak state of the European economy, and that recent regulatory stress tests on the sector had not taken sufficient account of the fragile economic backdrop.
"Given the fact that we've had some weak results in terms of loan growth at French banks, with loan growth even negative at Credit Agricole, there are fears of a real slowdown happening at these banks," said BESI analyst Shailesh Raikundlia. (Reporting by Lionel Laurent and Sudip Kar-Gupta, Editing by Alistair Smout)