A banking crisis would be devastating for UK businesses, according to one industry body.
David Kern, economic adviser to the British Chambers of Commerce (BCC), explains that the fall in share prices of UK banks means action must be taken to protect them.
He called on the Bank of England to further tighten its special liquidity scheme in order to help address the situation.
It should also move to cut interest rates next month to help kick start the economy.
"Labour market figures highlight the worsening recessionary pressures in the economy. Unemployment is up, employment and vacancies are down," Mr Kern said.
Last week, the BCC warned that British retailers will continue to struggle due to the fact that people have less disposable income and are less willing to spend what they do have.
Shops should not expect a quick recovery and the economy is likely to remain weak for a long period of time, the body stated.
