Following scrutiny of their pricing mechanisms for loans, the government is concerned banks are failing to meet the targets it set them as part of the taxpayer-funded bailout.

Under the terms of the two banks’ participation in the publicly funded insurance scheme for toxic debts, the banks made lending commitments to businesses and homeowners totalling £39bn this year.

While both are on track to meet mortgage lending targets, they have admitted that corporate loan targets will be tougher because firms are looking to clear debts rather than take on more borrowing during the recession.

The Treasury, which meets regularly with the two banks, is understood to be unconvinced that a lack of demand rather than the pricing of the loans, is the key issue.

A spokesman said: “The lending commitments must be met.”

Andy Willox, policy convener of the Federation of Small Businesses, said questions had to be answered over whether the banks were giving their “full support to the real, small business economy”.

Mr Willox highlighted the fact that Lloyds, which merged with Edinburgh-based HBOS, and RBS have a huge influence on the Scottish economy as more than three-quarters of the country’s small business banking market is now in their hands.

He added: “Evidence from the ground suggests that, although there is more credit available, the terms and conditions, interest rates, as well as fees and charges associated with borrowing, are creating significant problems for the small business community.

“The idea that it’s only high-risk businesses that have priced out of borrowing is laughable -- a recent Scottish Government report suggested that one in four of the smallest firms seeking credit were unable to get the full amount they required from any source.

“Most worrying is the idea that this pricing policy could be deliberate -- suggesting a worrying lack of competition.”

Finance Secretary John Swinney said the Scottish Government expects the banks “to play their part and contribute to an expansion of responsible lending”.

“It is incumbent on both the banks and the UK Government to ensure that the investment of public money results in viable businesses getting access to the finance they need.”

Labour’s John Park said banks had to “hold up their end of the deal” by supporting the government’s efforts to stimulate the economy.

Tory enterprise spokesman Gavin Brown said, while credit had to start flowing, the government had to be “mindful” of the signals it sent out.

He said: “At the moment it is asking the banks to follow two conflicting objectives --repairing their balance sheets and lending more. They cannot do both successfully at the same time.”

Both Edinburgh-based RBS and Lloyds defended their policies.

In the first half of this year, RBS made £28.6bn in gross loans to business but net lending was down £7.3bn because customers paid back more. Lloyds’ interim figures also showed corporate lending contracting by £18bn compared with one year earlier.

Despite the fall in lending, RBS -- which has around 30% of the UK small business lending market -- said it was “ready, willing and able to lend to meet creditworthy demand where it exists”.

The group declined to comment on the probe but said it was approving 85% of all credit applications and giving new loans to more than 5000 firms a week.

Lloyds said it “was playing its part in the UK’s economic recovery” with “competitively priced” products. It has also made specific commitments to customers through a Small Business Charter, such as passing on interest rates cuts.