* Banks retreat on Dubai debt worries

* Miners under pressure as commodity prices fall

* Share trading on LSE resumes after technical glitch

By Harpreet Bhal

LONDON, Nov 26 (Reuters) - Britain's top share index was down 2.9 percent in afternoon trade on Thursday, with banks under heavy pressure as investors' confidence slipped following jitters over Dubai's ability to pay its debts.

At 1516 GMT, the FTSE 100 .FTSE was 155.60 points lower at 5,209.21, shortly after shares resumed trading following a technical glitch that lasted for more than three hours. [ID:nGEE5AP1NO]

The index hit its lowest level in more than two weeks and registered its biggest one-day percentage decline in eight months.

Banks took the most points off the index, as concerns over the health of the global financial system resurfaced after Dubai said two of its flagship firms planned to delay repayment of billions of dollars of debt. [ID:nGEE5AP167]