The tax would raise about 57bn euros (US$78bn; £50bn) a year and would come into effect at the start of 2014.

London would be hardest hit by the tax as the majority of banking transactions in Europe come through the city. London officials have said that about 80% of the revenues of any Europe-wide financial tax would come from London.

In Germany and France bank shares also fell at close, and the European Banking Federation called the tax a "nonsense", while Austria, Belgium, Norway and Spain support such the tax.

A transaction tax would need the approval of the UK in order to be implemented across the EU.

The commission said that if the UK vetoed the tax, it would look to implement it in the eurozone.

Eurozone members are in the process of ratifying proposals put forward in July, one of which would see private lenders writing off about 20% of their loans to Greece.

The proposals also included expanding the powers of the eurozone bailout fund. Finland approved the plan on September 28, while Germany was scheduled to vote on it on day later.

G20 leaders met over the weekend to discuss the best way forward, but EU officials stressed that no grand plan of action had been agreed.