Gordon Brown has called on other governments to follow Britain's lead by supporting their struggling banks.
Writing in the Times, he said the crisis needed a "global solution" and wants world leaders to meet and plan a restructuring of financial markets.
It comes as the UK chancellor, Alistair Darling, is in Washington to meet finance ministers from the G7 group of richest nations.
The UK's FTSE 100 share index closed lower than any time since August 2004.
The fall comes despite Wednesday's historic bail-out package for ailing banks, totalling Ј500bn.
Mr Brown said that the banking system was fundamental to Germans Stockpiling Gold Amid Market Panic ...
Darling pledges to support banks ...
Norway pledges $1bn to preserve Brazil's rain forest ...
Obama address well received in Germany ...
US seeks boost to Pakistan F-16s ... "everything we do".
He said: "Because this is a global problem, it requires a global solution.
"Indeed this now moves to a global stage with a range of international meetings starting this week with the G7 and the International Monetary Fund and, we propose, culminating in a leaders meeting in which we must lay down the principles and the new policies for restructuring our banking and financial system all around the globe."
Mr Brown said that it is "only through the boldest of co-ordinated actions across the globe" that families and businesses could be "adequately supported".
Mr Darling's Washington meeting comes after the Dow Jones in New York slumped to its lowest level in five years, closing below the 9000 points barrier.
According to the Centre for Economics and Business Research, the value of city bonuses in the UK is expected to fall this year by 58%.
But it still forecasts that bonuses of about Ј3.5bn will be paid out.
(BBC)
<< Back