Shares in Halifax Bank of Scotland closed 21% higher on London's FTSE index tonight amid hopes a rescue takeover by Lloyds TSB will go ahead as planned.

Policymakers in England are set to deliver their third interest rate cut in five months tomorrow to help borrowers under increasing pressure from the credit squeeze.

Households in the UK caught in the fall-out from the global credit crunch were today told to expect a Bank of England rate cut later this week.

Halifax ended a turbulent week for the mortgage market today with the announcement that it was repricing its mortgage range.

Alliance & Leicester announced today it was scrapping interest charges on overdrafts and replacing them with a daily fee for people who go into the red.

Vodafone and First Direct have pulled advertising from Facebook to stop their brands appearing near British National Party details.

Free banking in the UK could disappear within two years if banks are forced to lower charges on unauthorised credit, market analysts today warned.

The UK banking sector is shaping up to deliver combined profits of more than £38bn (€56.4bn) for 2006 as the major players line up to release their full year results.

Banking giant HSBC today unveiled a forecast-beating 5% rise in half-year profits to $10.64bn (€8.7bn) as it reaped the rewards of its major global presence.