Some 185 workers on the site stopped work on Tuesday morning, according to the BBC.
Shepherd issued a statement this morning (Wednesday) saying the Anglo Irish Bank had announced it would no longer fund the scheme
"We are able to confirm that the Anglo Irish Bank has today declared they will no longer be supporting the funding of the Trinity Walk, Wakefield project," the statement read.
"Shepherd is proactively working with other partners on a rescue package to secure funding for the completion of the project and is committed to seeing this project succeed.
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"No further site operations will take place until funding is in place."
Work had started on the project in September 2007 with a number of retailers booked to take up units in the development.
Wakefield MP Mary Creagh said: "There have been problems financing the project since the Anglo-Irish Bank was nationalised in January this year.
"I have been working closely with Wakefield Council, Yorkshire Forward and and central government to arrive at a funding solution.
"I shall continue to do everything in my power to ensure this flagship city centre development project goes ahead."
Wakefield Council and regional development agency Yorkshire Forward said recently that they had identified ВЈ7m in grant aid for the project.
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