Shares in British banks were broadly down on the FTSE 100 following news last night that Ireland will accept a bailout from the European Union and the International Monetary Fund.

While the final terms of the deal are as yet unknown, it is expected that Ireland will receive loans worth 80 billion to 90 billion euros.

While investor fears may have been placated to a degree about Ireland, there are still concerns that further down the road Portugal and Spain may need bailouts of their own.

Ben May, economist at Capital Economics, said, "We expect fears about Spain needing to seek financial support to increase over the coming months

"Needless to say, the size of a support package for Spain would dwarf those of Greece and Ireland, leaving the rest of the eurozone with a pretty hefty bill. Accordingly, a bailout of Spain would almost inevitably lead to increased concerns about the future of the euro-zone and send the euro into freefall."

By 10:15 shares in Lloyds Banking Group were down 0.72 per cent to 66.24 pence per share, RBS shares dropped 1.00 per cent to 41.35 pence per share and HSBC shares declined 0.38 per cent to 655.00 pence per share.

Barclays proved the exception however with shares rising 0.36 per cent to 275.20 pence per share.

Overall the FTSE 100 was up 0.32 per cent to 5,751.16.