UK banks suffer more markets pain

 

Britain's biggest banks suffered more pain on the markets today after Spain fuelled the flames of the eurozone crisis with more economic woe.

Barclays, Lloyds Banking Group and Royal Bank of Scotland all saw their shares slide about 3% as Spain's implied borrowing costs moved higher during a closely-watched debt auction, while the wider FTSE 100 Index lost more than 1%.

As the struggling country confirmed it was in recession, reports also emerged that customers of Bankia, Spain's fourth largest bank, have withdrawn more than one billion euros (£800 million) since it was nationalised last week.

The worrying picture came as concerns over Greece's membership in the euro area persisted, with an emergency government being sworn in until fresh elections are held next month.

PA

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