Bradford & Bingley has attempted to reassure investors by proclaiming that it is to meet profit forecasts and has sufficient funding.
Alliance & Leicester also announced that it was in rude health, which caused shares in the bank to rise by 11%.
“We have taken the view that we should take our funding when we can and we got in some early funding deals when the windows were open, so we are padded up for the long haul,” says Steven Cranshaw, chief executive, Bradford & Bingley. Alliance & Leicester also says that it has maintained growth despite “unprecedented conditions” in the banking industry.
“In extraordinarily challenging conditions in credit markets, they have succeeded in securing requisite funds from commercial sources,” says Robert Peston, business editor, BBC.
Analysts had feared that the two banks would struggle to secure funding after interbank lending has been curtailed by the ongoing credit crunch.