North-East mortgage lender the Northern Rock is applying to the Bank of England for emergency financial support, it emerged tonight.

The report came from BBC News, which said the move did not mean the bank was in danger of going bust and that its problems were more likely to be temporary.

Northern Rock, one of the region's most important financial institutions, has become the latest victim of problems that have hit world business hard in recent weeks.

The crisis began when the US lending market ran into serious problems earlier this summer after American finance companies became concerned about large defaults in repayments.

The incident caused global share prices to fall sharply and made it more difficult for banks to raise funding to finance lending.

Northern Rock is believed to have been one of those that has struggled.

Earlier this week, the Bank of England responded to the growing crisis in the financial market by confirming that it would be an emergency lender for those institutions experiencing problems.

Tonight, BBC Business Editor Robert Peston said there was no reason for people with Northern Rock savings accounts to panic.

He said: "Although the firm remains profitable, the fact that it has had to go cap in hand to the Bank is the most tangible sign that the crisis in financial markets is spilling over into businesses that touch most of our lives.

"The fact that the Bank of England has been prepared to act as the lender of last resort is an indication that it thinks the problems at Northern Rock are temporary ones.

"All banks are having greater difficulties than normal getting funding from the market.

"But as a specialist mortgage lender, Northern Rock, no-one really wants to lend to them."

Tonight, the Bank of England confirmed that it would help Northern Rock through its financial difficulties.