Bank of England governor Mark Carney has announced £250 billion of financial support for the economy as the markets reacted to the vote to leave the European Union.
In a bid to restore calm Mr Carney insisted that the UK economy was “well prepared” for the financial shock.
Banks had been stress tested for much more catastrophic scenarios he insisted.
Read more: David Cameron resigns as Prime Minister following Brexit
But he said that "some market and economic volatility can be expected" in the wake of the Brexit vote.
More than £100bn was wiped off the value of the UK’s biggest companies within minutes of the markets opening at 8am.
Read more: Britain votes to leave European Union despite Scotland wanting to Remain
Banks bore the brunt with Royal Bank of Scotland down 28 per cent, Barclays down 27 per cent and Lloyds 24 per cent.
The pound also crashed 8 per cent against the dollar, falling from 1.50 US dollars to 1.36.
Read more: JK Rowling - Scotland will see independence after Brexit
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