The Federation of Small Businesses (FSB) has released its findings that small businesses are still not receiving good enough quality service from their banks when it comes to switching accounts, overcharging and customer services.
The findings are a result of the FSB's investigation into the progress made by banks since the Cruickshank Review of 2000 and the recommendations of the Competition Commission Inquiry of 2002.
The FSB found that banks were not fulfilling their commitment to the Competition Commission to offer free banking or pay at least 2.5 per cent interest on business current accounts and to publicise these services to their customers, with the result that thousands of SMEs are missing out.
Mike Cherry, FSB financial affairs chairman, has called for a "culture change" among the major banks, who have all announced record profits, to better understand the needs of small businesses and acknowledge that their economic wellbeing is crucial to the country as a whole.
Mr Cherry said: "The Competition Commission found that the major banks were making £2 billion per year in profits from small business banking.
"We call on the banks to live up to their undertakings to the Competition Commission or, if they fail to do so, for the regulators to make them."
