The UK government has announced details of a rescue package for the banking system worth at least £50bn.

It will initially make the extra capital available to eight of the UK's largest banks and building societies.

In return for the funding, the government will receive preference shares in those institutions.

The money will be used to prop up the banking system that has seen share prices plunging in recent weeks as banks have struggled to access funding.

As part of the package, a further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies.