FTSE slides as fear swirls through financial markets

* FTSE 100 falls 4.7 percent

* Banks knocked by uncertainty on European financial sector

* Miners, oils hit by falling crude, metals prices

By Simon Falush

LONDON, Oct 6 (Reuters) - Britain's top share index fell 4.7 percent early on Monday, with banking stocks hammered as officials across the globe scrambled to contain the fallout from the escalating crisis in financial markets.

By 0748 GMT the FTSE 100 .FTSE was down 233.2 points at 4,749.0 after losing 2.1 percent last week, following a 4.3 percent overnight fall in Japan's Nikkei 225 index .N225. No stock was in positive territory on the UK benchmark.

Banks were among the biggest fallers with Barclays , Royal Bank of Scotland and HSBC down between 4.7 and 11.9 percent while HBOS was the top loser in the index, falling 14.6 percent.

The UK treasury minister said Britain is looking at all options on the financial crisis and that it is prepared to take radical action where it is needed.

The Financial Times said Alistair Darling was considering a taxpayer-funded recapitalisation of Britain's banks, amid signs of cross-party and central bank support for an effective part-nationalisation of the sector.

"Governments have been getting involved in trying to prop up markets but markets are going to find their own levels," said Richard Hunter, head of UK equities at Hargreaves Lansdown.

Germany offered a blanket deposit guarantee as it clinched a deal to rescue lender Hypo Real Estate (HRXG.DE: Quote, Profile, Research, Stock Buzz) at the second time of asking, while regulators from Washington to Seoul took their own steps to ensure the stability of financial firms.

Investors were also concerned whether a $700 billion bailout package agreed last week from the United States would be big enough to prevent a global recession.

"The (U.S.) bailout has gone through but there are concerns about how it's going to be implemented and with European banks also in trouble, it's playing on investor jitters," Hunter said.

Other financial stocks were also hit, with interdealer broker ICAP down 4.9 percent, and insurers Old Mutual and Standard Life falling 6.6 and 7.5 percent respectively.

Mining stocks were hit by falling metals prices on fears that the financial crisis would lead to a wider economic slowdown and shrink demand.

Xstrata , BHP Billiton , Rio Tinto , Anglo American ALL.L and Eurasian Natural Resources fell between 8.3 and 16 percent.

"Governments are making progress in sorting out problems in the banking sector, but there's a growing realisation that they are not in a position to deal with the economic slowdown that's coming," said Graham Neale, director at stockbroker Killik & Co.

Energy companies were hit by falls of more than $3 in crude prices CLc1 below $91, with BP down 4.9 percent Royal Dutch Shell losing 5 percent and Cairn Energy falling 8.3 percent.

Retailers were also pressured, with the Financial Times quoting the country's largest corporate insolvency specialist Begbies Traynor as saying a large number of UK retailers could go bust in the new year.

Marks & Spencer fell 1.25 percent, Next fell 2.6 percent and Kingfisher KGF.L fell 3.4 percent.

(editing by John Stonestreet)