"SMEs are a vital driver of growth in the UK," said Vivienne Dews, the chief executive of the OFT. "They need access to banking services and loans which meet their needs.
"Our work suggests there may be competition concerns in this sector. Further action will follow if concerns in these areas are not addressed," she added.
John Longworth, director general of the British Chambers of Commerce, said of the watchdog's findings: "Greater competition in the business banking market is only part of the story of fixing Britain’s broken business finance system. More must be done to provide growth capital to young and fast-growing firms who are often perceived to be too high risk.
"That means broadening the role of equity and bond issues in business finance, but it also means delivering a British Business Bank that is sufficiently capitalized and has the capability to lend directly to promising high-growth businesses"
The OFT also announced that the Competition and Markets Authority will take over the study as part of a wider probe into retail banking. The Financial Conduct Authority will also contribute to the research.
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