Shares in British banks were up on the FTSE 100 in morning trading as concerns about the eurozone and Chinese economies were eased.

Last night it was confirmed that Greece has agreed to more tax rises and spending cuts in order to receive bailout payments from the European Union and the International Monetary Fund.

In addition Wen Jiabao, the Chinese Premier, told the Financial Times that his government would keep prices in China under control in order to keep inflation down, easing fears that Chinese inflation could drag global economic growth.

By 10:25 shares in Lloyds Banking Group were up 1.00 per cent to 45.72 pence per share, RBS shares rose 2.97 per cent to 37.83 pence per share, Barclays shares climbed 0.82 per cent to 245.35 pence per share and HSBC shares increased 1.85 per cent to 612.20 pence per share.

Overall the FTSE 100 was up 1.58 per cent to 5,764.34.