The British lender saw its stock slump 5.3 per cent as investors were rocked by concerns over the impact that negative interest rates in Europe would have on the sector, global growth and low profitability.

Rivals Lloyds Banking Group and Royal Bank of Scotland saw their shares fall 4 per cent and 4.5 per cent respectively. The wider FTSE 100 dropped 2.75 per cent reports the Telegraph.

Shares in European banks fared even worse, with Deutsche Bank down 8.8pc amid worries over its losses, capital position and some bonds.

Analysts believe this surge in investor concern at Deutsche has been projected onto Barclays’ shares, resulting in large moves in the price and an eight-minute freeze in trading.

“Barclays has traditionally been seen as a UK proxy for Deutsche Bank in history it has had similar characteristics, with an investment bank and capital ratios which are weaker than its domestic peers ,” said Ian Gordon from Investec.

“Barclays has a higher degree of international connectivity [than the other UK banks], so on a day when European banks’ credit default swaps spreads [a measure which tracks perceived levels of risk] are going through the roof, they would be a bank exposed to contagion and counterparty risk issues. But Barclays is not trading on specifics, it is trading on general market sentiment issues.”

Fellow internationally-focused UK bank Standard Chartered saw its shares fall 5.75 per cent, also triggering a brief suspension.

Barclays declined to comment.