What assessment he has made of the level of business investment by banks in Wales.

Recent Bank of England data show that the availability of credit to businesses, including small and medium-sized enterprises, has increased significantly across the United Kingdom.

Businesses in Wrexham tell me that the biggest barrier to growth is the lack of availability of finance. Today Barclays has talked of more redundancies and more bankers’ bonuses. Will the Secretary of State support me by establishing a regional bank for Wales which will be attuned to the local economy, and which will provide the finance for business that will enable the local economy to grow?

The proposal for a development bank for Wales was floated recently by Professor Dylan Jones-Evans, and I believe that he is now conducting another exercise for Edwina Hart, the business development Minister in Wales. We are certainly prepared to consider the proposal, and, in fact, I have already discussed it with my right hon. Friend the Secretary of State for Business, Innovation and Skills.

Does my right hon. Friend welcome the fact that it was this Government who passed the Financial Services (Banking Reform) Act 2013, which enabled local banks to come into existence and has resulted in the creation of more than 20 new challenger banks, and which the Labour party voted against?

I entirely agree with my hon. Friend. Furthermore, the Government are working closely with the British Bankers Association to set up a business finance taskforce, which gives bank customers a right of appeal when they feel that they have been treated unfairly.

Why, instead of coming out with the usual Government flannel, does the Secretary of State not admit that, according to the House of Commons Library, net bank lending—that is, new loans minus repayments—to small and medium-sized enterprises in Wales has been negative over the last two years? Since the third quarter of 2011, small businesses in Wales have paid back to the banks £148 million more than they have been able to borrow, and medium-sized businesses have paid back £186 million more than they have been lent. The truth is that the banking system in Wales is broken, and the Secretary of State is doing nothing about it.

On the contrary, as my hon. Friend Guy Opperman has just pointed out, the Financial Services (Banking Reform) Act has put a great deal more power into the hands of customers. It has also done a great deal to repair the damage that was done under the last Labour Administration.

Many of my constituents continue to be affected by the interest rate swap scandal, when banks were deliberately targeting businesses, and wrecking lives and real economic activity. My constituents Mr and Mrs Bartels, for instance, were deliberately bankrupted by Barclays. What can the Secretary of State do to support the excellent work of Guto Bebb and the all-party parliamentary group on interest rate swap mis-selling to secure justice for Welsh businesses that have been ripped off by exploitative banks?

I entirely agree with the hon. Gentleman: my hon. Friend Guto Bebb has indeed done a great deal. If the hon. Gentleman wishes to write to me about the individual case that he mentioned, I will investigate it further.

Given that banks are still not doing enough to help entrepreneurs in Wales, does the Secretary of State support his right hon. Friend the Chancellor in his legal pursuit of the European Union to prevent it from capping bankers’ bonuses?

The position on bankers’ bonuses is entirely clear. In respect of the banks in which the Government have a shareholding, my right hon. Friend the Prime Minister has already said that there will be no cash bonuses of more than £2,000 at RBS and Lloyds Banking Group, and that the Government will veto any proposals to increase overall pay—that is, pay and bonus bills—at RBS.