Language linked to the use of "emergency" facilities means there remains a stigma attached to accessing some funds, and banks should be allowed to use more collateral for borrowings and the duration of loans should be extended, they said.
The U.S. Federal Reserve and ECB have been quicker to respond to a deepening credit crisis, they said. The Fed aided a bail-out of investment bank Bear Stearns last weekend, making it clear its primary concern was maintaining stability, rather than controlling inflation.
The ECB has aggressively added extra liquidity, including an extra 15 billion euros to tide euro zone banks over the Easter holiday period..
Northern Rock, Britain's highest profile casualty of the credit crunch that began in August, was hit by a shortage of liquidity after speculation about problems caused banks to stop lending to it.
BIG 5 MEETING
Chief executives or senior directors from the "Big 5" banks - HSBC, Royal Bank of Scotland, Barclays, Lloyds TSB and HBOS - met King and BoE officials for a "regular exchange of views".
The meeting was only called last week, however, and little in banking at present can be considered routine.
A sharp cut in U.S. interest rates this week and other measures to help liquidity have provided only temporary comfort.
At an offer for an extra 5 billion pounds on Monday, UK banks subscribed for 23 billion pounds.
The interbank cost of borrowing three-month sterling hit a fresh high for the year of 5.9875 percent on Thursday, its 10th straight rise, as worries about counterparty risks have left banks wary about lending to one another.
That has helped fuel the increased speculation about banks potentially in trouble.
Authorities are concerned that speculators can benefit from wild gyrations in share prices and spreading false information.
Worries about wild speculation is not limited to Britain.
Ireland's regulator said it was concerned about "false rumours" affecting Irish shares; Germany voiced concern about "hysteria" heightening the market turmoil; and U.S. regulators are reported to be probing activity around Bear Stearns before its collapse.
