HIGH street banks will be "held to account" over promises they made to the North-East's small firms yesterday, a leading regional business figure said.

James Ramsbotham, chief executive of North East Chamber of Commerce (NECC), was speaking as Financial Secretary to the Treasury Mark Hoban said the banks needed to re-establish a bond of trust with businesses.

The two men both attended a joint British Chambers of Commerce and British Bankers' Association event in Gateshead where 140 North-East firms were able to raise issues with representatives of the five largest high street banks.

It comes as the banks attempt to build bridges with the small business community, many of which believe they are wasting their time even applying for help.

Mr Ramsbotham, who chaired the event, said: "As we go up the growth curve we are going to need more support from the banks.

"The conference has been a fantastic opportunity for businesses to tell the banks what they need and we will hold them to account over the coming months as to how they respond."

County Durham born Mr Hoban, a former pupil of St Leonard's RC comprehensive, said: "One of the things we really need to do is re-establish a bond of trust between the banks and businesses, as well as the rest of the population.

"The best way is to demonstrate they are doing what we want them to, lending and getting businesses growing."

The event supported by Barclays, HSBC, RBS, Lloyds and Santander, aimed to ensure small businesses understand how lending decisions are made, what sources of finance are available and how the appeals process works if an application to borrow is turned down.

Mr Hoban added: "Banks have sent a very clear signal to businesses that they have the money to lend.

"Banks are sending a very clear message, come to us with your business plans and ideas for growth."

Angela Knight, Chief Executive, British Bankers' Association said: "It's all about confidence. We recognise that we need to play our part in improving confidence as a big increase in demand for finance and economic growth go hand-in-hand."

While in the region Mr Hoban, who has responsibility for UK Financial Investments (UKFI), the body that controls the Government's stakes in Britain's banks, also visited Northern Rock, which has been put up for sale, and met staff, who are still uncertain about their futures.

He said: "I think it is very important we recognise the contribution the staff have made and uncertainty that is about."