Mr Sarkozy will also host a meeting with Germany, Britain, Italy, European Central Bank President Jean-Claude Trichet and Luxembourg Prime Minister Jean-Claude Juncker before the end of the week to discuss the crisis.

'We must not give way in the face of destabilisation. We have to support the banks,' he told a joint news conference with Indian Prime Minister Manmohan Singh and European Commission President Jose Manuel Barroso.

The comment came as shares in French bank Dexia sank on a report it might need emergency capital and after a string of bank rescue deals in the Benelux countries, Britain and Germany.

Mr Sarkozy's office said he had summoned the heads of the main French banks and insurers to a meeting at the Elysee Palace 'aimed at reviewing the situation of financial institutions as well as the distribution of credit to households and companies'.

The meeting on Tuesday at 8.30am (4.30pm Singapore time) would also be attended by Bank of France Governor Christian Noyer, Economy Minister Christine Lagarde and Prime Minister Francois Fillon, a statement from his office said.

Speaking in the southern city of Marseille, he said intense contacts between European capitals had been underway to discuss the crisis.

'I will... bring together in Paris in the coming days ... the four European countries that are members of the G8 - Germany, Great Britain, Italy and of course France - and the president of the euro zone, Mr Juncker, and ECB President Mr Trichet,' he said.

Mr Sarkozy said the meeting would aim to find one European voice on the crisis. An official in his office said the meeting would be held before the end of the week.

Mr Sarkozy also confirmed a promise he made in a speech last week in the city of Toulon that he would ensure French depositors did not lose a single euro if any French bank got into trouble.

Rapid reactions

'We worked very hard this weekend,' he said. 'There have been multiple contacts between the different European governments. The situation requires rapid reactions. Everybody must show calm and a sense of responsibility. What I said in Toulon, I confirm today.'

French ministers have repeatedly said domestic banks were less vulnerable to global financial market turmoil than their US counterparts but Mr Sarkozy has adopted a more urgent tone since his speech in Toulon last week.

On Monday, he repeated his call for a meeting of world leaders to set the global financial system on a sounder footing.

'I confirm my appeal for a summit in the coming weeks to set the foundations for a new international financial system,' he said, adding that the meeting of the leaders of Britain, France, Germany and Italy would help to establish the agenda.

A summit of European Union leaders on Oct 15 would also discuss the crisis, said Mr Sarkozy, whose country holds the rotating EU presidency.

Mr Barroso backed Mr Sarkozy's call for an international meeting.

'President Sarkozy and myself are in the process of preparing some initiatives that we may be able to present to the European Council on Oct 15,' he told the news conference.

It was essential to formulate a 'structured European response' to the crisis. 'It is the only way to ensure that stability and confidence can return,' he said. -- REUTERS