Bank of England 'taking eurozone precautions'

The Bank of England is making preparations to support UK banks in the event of a break-up of the eurozone, deputy governor Charlie Bean confirmed today, describing the present state of the single currency area as a “worrying situation”.

Mr Bean said that the Bank has recently introduced a temporary loan facility as a precaution, for use in the event of contagion from the eurozone crisis endangering British institutions.