Shares in British banks were up on the FTSE 100 in morning trading following Greece's apparent decision to embark on severe austerity measures.

Yesterday the Greek Parliament voted in favour of passing austerity measures, after another vote on Wednesday.

The passage of the austerity measures mean that Greece will, for now at least, be able to receive bailout payments from the European Union and the International Monetary Fund.

Large and sometimes violent protests took place outside the Greek Parliament, perhaps reflective of opinion polls which suggest that 70 to 80 per cent of Greeks oppose the measures.

In addition questions have been asked about whether Greece will seriously be able to implement the cuts and that even if such measures are possible, whether they can actually save Greece from a default.

By 09:40 shares in Lloyds Banking Group were up 1.71 per cent to 49.84 pence per share, RBS shares rose 1.17 per cent to 38.91 pence per share, Barclays shares climbed 1.19 per cent to 259.50 pence per share and HSBC shares increased 0.89 per cent to 623.90 pence per share.

Overall the FTSE 100 was flat at 5,945.39.

Barclays HSBC FTSE European Union