AS Britain continues to tip-toe its way through its fragile economic recovery, the role being played by the banks continues to be a cause of national concern.

The clear view of the North-East Property Forum, which met in Darlington this week, is that the banks are still not playing fair.

Having been propped up by taxpayers’ money to save them from selfinflicted meltdown, the banks now stand accused of hampering economic progress by making it as difficult as possible to get a mortgage.

There is a need for balance: Britain cannot afford to return to the kind of reckless lending which led to the credit crunch, but it does not want housebuyers to be tied up in financial straitjackets either.

The banks have gone from one extreme to the other and understandable frustration among businesses is building.

Unprecedented amounts of public money were pumped into banks to enable them to rebuild their balance sheets on the public understanding that they would continue to play their role in lubricating the wheels of the economy.

Instead of playing that role, the Royal Bank of Scotland, the bank which is most owned by taxpayers, announced yesterday that it will pay £1.3bn in bonuses despite making a loss of £3.6bn for 2009.

It argues that the bonuses are needed to stop the best staff from going abroad.

But those big bonuses are in conflict with the daily experiences of housebuyers and businesses who are being denied financial help.