Shares in British banks were down on the FTSE 100 in morning trading following news from the US Federal Reserve earlier this week.

The Federal Reserve said that it would be keeping US target interest rates at their current low levels of 0-0.25 per cent, citing a slowing of the economic recovery.

The US central bank however did not give much indication as to whether it would be starting another round of asset purchases to stimulate the economy.

By 10:30 shares in Lloyds Banking Group were down 2.08 per cent to 75.30 pence per share, RBS shares fell 2.18 per cent to 47.52 pence per share, Barclays shares declined 1.76 per cent to 306.10 pence per share and HSBC shares dropped 1.15 per cent to 663.30 pence per share.

Overall the FTSE 100 was down 0.74 per cent to 5,535.13.