Liberal Democrat Shadow Chancellor Vince Cable has called on banks to make good on their previously stated commitments to increase lending.

This follows publication of data from the Institute of Directors which shows that nearly 60% of businesses seeking bank finance in 2009/10 were rejected by their bank, and that 20% are financing their businesses to some extent with credit cards.

Cable said: “There is a huge gap between what the banks tell us and the experience of companies on the ground. This evidence confirms that large numbers of small and medium sized businesses are still having difficulty in getting credit on reasonable terms.