UK banks are waiting for official confirmation from the chancellor that they will be part nationalised in a bid to resist the global credit crisis.

Alistair Darling is due to make a statement before the London Stock Exchange opens on Wednesday morning, ahead of an address in the House of Commons later in the day.

Yesterday Mr Darling joined the governor of the bank of England and the head of the Financial Services Authority in holding talks with the prime minister at No 10.

It is understood that during this meeting a plan to inject £50 billion into individual banks was agreed upon.

The chancellor provided few concrete details of the plan when he spoke to journalists after leaving the talks with Gordon Brown, Mervyn King and Lord Turner.

“The Bank of England has been putting substantial sums into the markets today and is ready to do more when that’s needed,” he said.

“As I said in the House of Commons on Monday, we’ve been working closely with the governor of the Bank of England, with the Financial Services Authority and financial institutions to put the banks on a longer-term sound footing.

“I intend to make a statement before the markets open tomorrow morning and I will be making a further statement to the House of Commons later in the day.”

The Downing Street talks were held in reaction to a second day of panic on the FTSE 100, particularly on banking stocks.

Royal Bank of Scotland lost 39 per cent of its value in another turbulent day, while Barclays and Lloyds TSB fell nine per cent and 13 per cent respectively.

This followed Monday’s unprecedented falls on the FTSE 100, which slumped to its worst daily decline for more than two decades.