Bank of England governor Mark Carney has warned that the UK should expect economic volatility whilst announcing that the central bank will pump £250bn in to the market to prop up sterling.
And Carney said he will stand behind British banks to ensure that credit is available to both businesses and households.
But banking stocks have dropped by between 20% and 30% since the market opened at 8am this morning with Royal Bank of Scotland, Barclays and Lloyds all being hit.
Previously Carney warned that a Brexit could see the UK fall in to what he termed a “technical recession”.
Carney also tried to calm the waters in the markets following the vote saying that UK banks were not in the same place as they were in 2007 due to changes in regulation.
He pointed to capital adequacy requirements and BoE stress testing of banks as two reasons why the sector is on a stronger footing.