HBOS and Nationwide Building Society, the UK’s two largest mortgage lenders, have between them raised more than £15bn (€19bn) in the private debt markets in the past three months, highlighting how banks have sought alternative funding channels in the wake of the credit crunch.

HBOS, which last Friday won shareholder backing for its £4bn rights issue, and Nationwide have been forced to seek financing outside of the public markets, where the cost of funding has risen substantially due to the credit volatility.