The FTSE 100 has fallen over 2 per cent in early trades with banking shares taking a hit after the Independent Commission on Banking was published.
At 8.46am, the FTSE 100 was down 2.36 per cent to stand at 5091.69, with Royal Bank of Scotland, Lloyds Banking Group and Barclays all having their share prices cut by more than 5 per cent.
The Independent Commission on Banking, led by Sir John Vickers, says UK banks should ringfence their retail banking divisions to protect them from riskier investment banking arms. The ICB is calling for the changes to be implemented by the start of 2019.
Global shares also fell amid concerns of a global default by Greece. In Europe, the French Cac 40 has fallen by 4.2 per cent, while the German Dax has dropped by 2.8 per cent.
In Asia, Japan’s Nikkei 225 index has ended the day down 2.3 per cent, while shares in Hong Kong fell 4 per cent. Australian stocks were down 3.7 per cent.