the big banks are misleading the public

Banks are misleading the public about how much money they are lending to small businesses, the Business Secretary said yesterday.

High-street giants insist that they accept about eight in 10 of all applications from small and medium-sized enterprises.

But Vince Cable told MPs yesterday that this ignores the fact that many bosses are 'discouraged' from even applying.


Slanted figures: Business Secretary Vince Cable told the Commons Business, Innovation and Skills Committee that the big banks are misleading the public

This means that the high success rate claimed by the banks may be much lower if the number of bosses who are deterred from even trying was included.

He told the Business, Innovation and Skills Committee: 'A lot of demand is discouraged.

'People ask a preliminary question at their local branch, and they are discouraged from applying. And that is a real phenomenon.'