Short sellers could not have been to blame for the share price falls in UK banks, according to data just published, as consultants warn the shorting freeze imposed by the Financial Services Authority has damaged market confidence.

The level of stock borrowing of HBOS shares, whose price tumble last week led to the bank being taken over by rival Lloyds TSB, was 3% of the available shares last Friday, according to UK analyst DataExplorers. It had been at about this level, which is typical of all UK public companies, since August.