Britain's smaller banks jostle for business banking grants

London

BRITAIN'S smaller banks are lining up to apply for multi-million pound grants the government hopes will help them compete in the corporate banking market.

For years the government has wanted to reduce the dominance of big banks in the small-to medium-sized business (SME) banking sector. The four largest - HSBC, Barclays, Royal Bank of Scotland (RBS) and Lloyds Banking Group - control over 70 per cent of business current accounts.