Shares in British banks were largely up on the FTSE 100 in morning trading after days of heavy losses brought about by fears of a double-dip recession.

Earlier this week the FTSE 100 fell below the 5,000 mark for only the second time this year and continued declining to below 4,900.

Weak data on Chinese growth and manufacturing spooked investors that the global economic recovery could be less strong than previously hoped. In addition on Wednesday Barclays bank said that conditions in investment banking were less good, leading analysts to downgrade profit expectations for the bank.

Despite falls earlier in the week shares in British banks were up on the FTSE 100. By 11:32 shares in Lloyds Banking Group were up 3.05 per cent to 53.80 pence per share, RBS shares rose 0.71 per cent to 39.75 pence per share, while HSBC shares increased 0.42 per cent to 601.60 pence per share.

However Barclays shares continued to decline, with shares down 1.03 per cent to 263.10 pence per share.

Overall the FTSE 100 was up 0.55 per cent to 4,832.36.