The number of small businesses being refused bank finance remains high, with many complaining that lenders are making it difficult to access finance, a new survey has claimed.

According to the Isme Quarterly Bank Watch Survey, more than half of small and medium-sized firms said they were refused bank credit in the past three months.

That compares with 58 per cent in the second quarter of the year.

However, about two-thirds said banks are making it more difficult for SMEs to access finance, with companies who change banking facilities reporting increased charges and interest rates, and reduced overdrafts.

An overwhelming majority of those surveyed – 92 per cent – said the Government’s actions made no difference when it came to securing credit.

“The results of today’s survey confirm the evidence of the recently published EU survey on access to finance in the euro area, which confirmed that Irish SMEs were second least successful, after Greece, in obtaining bank finance and that the Irish situation was only one of two where the access had deteriorated from the previous survey,” said Isme chief executive Mark Fielding.

“It is obvious that the Government’s instructions to the bailed out banks to increase access to finance for viable SMEs is being ignored.”

The organisation has called for the Government to deal with the banks who have accepted State aid and provide stronger oversight to force banks to live up to their commitments to Ireland’s small enterprises.

It is also seeking the introduction of other sources of bank credit, including the Strategic Investment Bank and the introduction of the Partial Guarantee scheme.

According to the head of the Credit Review Office, John Trethowan, Bank of Ireland and Allied Irish Banks are expected to lend "in or around" their €3 billion target to small businesses this year.

Speaking at the publication of the sixth quarterly report of his office last month, Mr Trethowan said he had overturned 41 out of 131 credit refusals by Bank of Ireland and AIB since April 2010.

An independent survey of credit demand among SMEs commissioned by the Department of Finance showed that 30 per cent of firms were being refused bank credit, excluding cases where a decision was pending. The survey of 1,506 firms found 36 per cent requested credit from April to September. Bank of Ireland and AIB refused credit in 23 per cent of cases over the six months, while approval was given in 54 per cent.