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Opposition Leader Tony Abbott and the Coalition's small business spokesman Bruce Billson are campaigning for a Senate inquiry into bank lending practices towards small businesses.
The purpose of the inquiry, if it goes ahead, is to examine the availability and affordability of finance for small businesses.
Small businesses say the banks have closed their lending books to them while at the same time increased costs and conditions.
Mr Billson told ABC News that the banks failed to pass on the savings of a lower interest rate environment.
“The banks didn’t pass on the full extent of the rate cuts to small businesses and as rates have been going up the small business rates have been going up even faster.”
Mr Billson said that interest rate movements and bank policy have conspired against small businesses.
“That old saying that to lend to small business you need a mortgage over your home and your first born, that used to be a wry joke but for too many it's now becoming a fact of life,” Mr Billson said.
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