Shares in British banks were up on the FTSE 100 in morning trading after some stability beckoned for the eurozone, which is once again in the midst of a debt crisis.

Ireland has been widely expected to need a bailout, due to the poor state of its banking sector's finances. However the nation's leaders have so far denied that any bailout is necessary.

Despite this the country did agree yesterday for the European Union and the International Monetary Fund to work with it in restoring the financial health of its banks.

The news appeared to boost investor confidence in British banks, which have largely seen their shares fall this week as the crisis continues.

By 10:15 shares in Lloyds Banking Group were up 2.20 per cent to 67.86 pence per share, RBS shares increased 1.15 per cent to 42.21 pence per share, Barclays shares rose 1.62 per cent to 278.70 pence per share and HSBC shares climbed 1.62 per cent to 671.20 pence per share.

Overall the FTSE 100 was up 1.24 per cent to 5,762.92.