Britian could be hardest hit by the global credit crisis as banks in this country have racked up bigger losses than anywhere else in the world, a new International Monetary Fund analysis shows. Daily Telegraph

The IMF expects British banks to lose more than £20bn — equivalent to three per cent of gross domestic product — from the international meltdown in sub-prime mortgages.

American banks, which had been thought to be bearing the brunt of the credit crisis, will lose £72bn — equivalent to only 1.4% of US GDP. By contrast Japan’s losses are £5bn and China’s £1.5bn.

European countries using the single currency have lost £61.5bn — 1.7% of GDP.