Shares in British banks were broadly up on the FTSE 100 in morning trading as debt concerns in the eurozone were eased and ahead of a statement from the Bank of England.

Yesterday Portugal, who may be next in line for a bailout after Greece and Ireland, held a successful debt auction, helping to buy some time for the "P" of the "PIIGS". Similar auctions are to take place today in Spain and Italy.

Today will also see interest rate decisions announced by the Bank of England and the European Central Bank, although no change is expected yet again.

By 10:35 shares in Lloyds Banking Group were up 0.56 per cent to 68.09 pence per share, RBS shares increased 2.57 per cent to 42.26 pence per share and Barclays shares rose 0.25 per cent to 303.35 pence per share.

However HSBC shares fell 0.04 per cent to 714.70 pence per share.

Overall the FTSE 100 dropped 0.62 per cent to 6,013.02.

Barclays HSBC FTSE Portugal