Cypriot President Nicos Anastasiades bowed to demands by eurozone finance ministers to raise €5.8bn by taking a piece of every bank account in Cyprus.

The bank tax could be levied today if politicians sign it off.

The shock tax on deposit holders – which includes a large number of UK citizens – sent markets reeling amid fears it will spark a move to withdraw huge sums from across Europe.

Bank of Cyprus UK Limited is a separately capitalised UK incorporated bank, is subject to UK financial regulation, and eligible depositors are protected by the UK’s Financial Services Compensation Scheme.