The current turmoil in money markets has forced the Bank of England to extend its funding help to banks for an extra three months.
The Bank is extending its Special Liquidity Scheme, which allows banks to strengthen their balance sheets by swapping riskier assets for Treasury bonds, until January 30.
The scheme had been due to close on October 21 but the Bank has made the move "in view of the current disorderly market conditions".
The Bank said the extension to the scheme, which allows banks to swap assets for up to three years, would "provide additional time for banks to plan their access... in an orderly fashion".
As well as extending the scheme, the Bank has pumped £25 billion extra into money markets this week to relieve cash-starved banks.
Governor Mervyn King said last week the current facility had already had "significant" uptake from banks - reportedly as high as £200 billion - as the financial turmoil adds to funding pressure.
Financial markets have been rocked by the collapse of US investment bank Lehman Brothers and a US government-backed rescue of insurance giant AIG. UK bank Lloyds TSB is also in advanced talks over a takeover of rival HBOS.
The upheaval has sent the rate at which banks lend to each other soaring as financial institutions worry over potential losses.
Although overnight inter-bank lending rates eased back, the rate at which they will lend each other for three months saw its second big jump in as many days.
The Bank had been due to publish proposals on a permanent successor to the Special Liquidity Scheme (SLS) this week but added that a consultation on potential changes would come at a later date.