A report compiled by the Credit Review Office has called for a reassessment of the banks' lending policies.
The Credit Review Office provides an independent view on the refusal of credit to small and medium sized businesses and farms.
It says banks need to show more evidence of, what it calls, "enterprise risk-taking" in order to support economic recovery.
In its eighth report, the Credit Review Office says the challenge for banks is to provide credit for all viable businesses within the SME sector - to ensure that they fully support a recovery in the economy.
John Trethowan says the current risk appetite by banks needs to be reassessed, in order to support economic and employment recovery.
