Lord Peter Mandelson is to head a body aimed at examining the way high street banks provide finance to SMEs, it has been revealed.
In news which might interest business insurance customers, five major lenders have reached a deal with the government which will see them supply data on the way they fund small firms.
The agreement has been brokered at the first meeting of the Small Business Finance Forum.
Lord Mandelson said: "It is critical we understand what finance is available for small businesses and this monitoring panel will give us greater insight into the situation at ground level."
He added that the forum is committed to making sure that the credit issues facing companies today are resolved.
Recently, David Frost, director-general of the British Chambers of Commerce, warned that many otherwise viable businesses could go bust if they do not have access to supplies of credit.
Such a situation would be disastrous for the economy, he added.
