Northern Rock lost 6.5 per cent of its share price yesterday, becoming the FTSE 100’s biggest faller, as it emerged that the stricken bank’s borrowings had reached almost £23 billion. The shares closed at 172p, following other bank stocks down amid fears of another wave of losses from the credit crisis.

The Bank of England’s balance sheet for the week to October 31 showed a £2.2 billion increase in “other assets”, indicating that Northern Rock had drawn down more of its credit line. Simon Ward, chief economist at New Star Asset Management, said that the Rock debt with the Bank looked set to hit £30 billion. “The weekly rise [of £2.2 billion] is the smallest since the Rock crisis broke, but follows a £4.7 billion gain last week,” he said. “With deliberations on Northern Rock’s future dragging on, the loan seems likely to grow.”

Britain’s banks yesterday met with the Bank, the Financial Services Authority and the Treasury at a meeting called by the British Bankers’ Association to discuss the credit crisis.

GMAC Financial Services yesterday reported a $1.6 billion (£775 million) loss in the third quarter as a result of “dislocation in the mortgage and credit markets”. GMAC is expected to support a bid by Cerberus, the private equity firm, for Northern Rock.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax