Vince Cable: RBS 'very risk averse'
3 July 2013 Last updated at 10:24 BST
Royal Bank of Scotland has launched an independent review of its lending to small businesses.
RBS - which is 81%-owned by the government - said in May that it had £20bn that could be lent to UK businesses.
The bank's net lending to business fell by £1.6bn in the first quarter of 2013.
Speaking to BBC Breakfast, Business Secretary Vince Cable said he was "very frustrated" about the situation.
"They (RBS) have become very risk averse, and as a result they're not getting credit out," he added.