Shares in British banks were up on the FTSE 100 in morning trading as investors took advantage of lower prices following falls in recent days caused by the eurozone crisis.

On Sunday the European Union confirmed that it would be providing a bailout worth 85 billion euros to Ireland to ease the bad debts of its banks and its own budget deficit.

However investors were not impressed and far from being calmed appeared to start looking very closely at Portugal, which many expect be next in line for a bailout. Spain and Italy are also considered to be potential candidates for a bailout.

By 10:10 shares in Lloyds Banking Group were up 3.08 per cent to 62.27 pence per share, RBS shares rose 3.06 per cent to 38.74 pence per share, Barclays shares increased 1.40 per cent to 259.75 pence per share and HSBC shares climbed 0.74 per cent to 653.10 pence per share.

Overall the FTSE 100 was up 1.06 per cent to 5,587.06.