Getty Angela Merkel has been told Germany cannot bail Deutsche Bank out

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Jeroen Dijsselbloem said Berlin cannot be allowed to help the beleaguered bank after its shares plunged to a 33-year low today, prompting panic across Europe's financial sector. The president of the Eurogroup - the informal body of eurozone finance minister - made the comments today outside the Dutch Cabinet's weekly meeting. Deutsche's German-listed stock tumbled by nine per cent on Friday morning to a new record low, after its US-listed shares fell by more than eight per cent overnight amid news hedge funds were pulling business away from the lender.

At the close of the Börse Frankfurt, Deutsche Bank's shares bounced back into positive territory at 6.4 per cent, up by 0.69 at €11.57, leaving them 1.4 per cent higher for the week. The fresh sell-off rounds off a week of woe for the Germany's flagship bank, and sent shockwaves blasting across eurozone banks. Shares in Germany's second-biggest lender Commerzbank dived by more than six per cent, while France's Societe Generale and Spain's Banco Santander tumbled by around four and five per cent respectively.

Getty The Börse Frankfurt stock exchange went into turmoil this morning

Unlike Deutsche, Commerzbank's share price was down 1.21 per cent on the day's previous close. The fear sent Germany's top stock index the DAX down by more than 1.5 per cent, France's CAC by 1.6 per cent and Spain's IBEX by a massive 2.3 per cent.

Britain's FTSE 100 and FTSE 250 were both down by around one per cent in morning trading. Deutsche's chief executive again tried to restore faith in the bank with a memo to employees today.

Getty Jeroen Dijsselbloem, Dutch finance minister and head of the Eurogroup, gave Merkel the stark warning

Getty Angela Merkel also found out today Germany would be providing more cash to the EU after Brexit

John Cryan told staff news that a few hedge funds had reduced activities at Deutsche were "causing unjustified concerns". Around 10 hedge funds have reportedly adjusted positions and withdrawn some excess cash from the bank because of concerns for the group.

Angela Merkel in pictures Tue, August 8, 2017 Angela Merkel has served as German Chancellor since 2005 and Leader of the Christian Democratic Union since 2000. We take a look at her political career in pictures. Play slideshow AFP/Getty Images 1 of 83 Angela Merkel through the years