HBOS has denied market rumours that it has turned to the Bank of England for emergency funding.

Shares in the bank were down 36 pence, or 7.34%, at 445p in early trade.

'This is complete and utter nonsense,'said HBOS general manager of group communications Shane O'Riodain.

'HBOS is one of the world's strongest financial institutions, with one of the world's strongest balance sheets,' he said.

'We have ready access to a deep pool of retail deposits,' he said. 'We are one of the most respected names in the wholesale capital markets and we are continuing to access wholesale funding whenever appropriate.'