Leaders of the four main churches in Northern Ireland have called on banks to be more understanding towards businesses.

In a letter to banks, the heads of the Church of Ireland, the Methodist Church in Ireland, the Presbyterian Church in Ireland and the Catholic Church warned that some of their policies were "holding back recovery, and putting businesses and their employees at risk".

They are seeking a meeting with banks and are due to meet with senior politicians to raise their concerns.

The action is being taken after a number of prominent businesses across Northern Ireland approached the Church of Ireland's Archbishop of Armagh, the Most Rev Alan Harper for his help.

Speaking at the launch of the initiative this week, Archbishop Harper said banks had failed to live up to their obligations and to operate "according to the norms of best practice".

"While no-one is advocating a return to the irresponsible lending practises which precipitated the world wide downturn, there must also be a way of supporting businesses more positively," he said.

"We appreciate that the banks have a duty to restore strength to themselves and their sector overall.

"However, some of the experiences of businesses which have approached me are quite shocking, leading to instances of decent businesses, and decent business people being placed under immense pressure with the ultimate danger of closure and job losses which affect the whole community."

The Archbishop said that now was the time for a "more positive approach" to businesses from the banks.

He continued: "It is becoming clear that there is a tangible risk to the economy through banks seeking too rapid a restoration of their own balance sheets.

"That risk translates into a threat to jobs and family income for the rest of us inflicting additional misery on businesses and their employees.”

The Church leaders raised particular concern over the significant inflation in facility renewal charges, transaction charges or interest rates from previous levels, the immediate withdrawal of existing overdraft and project loan facilities, and the prolonged deliberation for facility renewal or project approval, known as the "slow no".

They also hit out banks for their insistence upon costly third party reports to facilitate appraisal and "a culture of aggression and threat, where the only priorities are the banks’ priorities".

Cardinal Sean Brady said that church and business leaders were not seeking a return to the speculative money lending practices of a few years ago. Rather, he argued that the current practice of denying capital to solid businesses was unsustainable.

He said he was "deeply concerned" at the level of stress which businessmen and women across Northern Ireland had been placed under through the impact of the economic downturn and by the behaviour of many banks towards them.

"Many of those who have come to us for support have been placed under needless financial pressure when they are running solid businesses which have provided much needed employment across Northern Ireland," he said.

"Many of our banks are businesses that have received support from the tax-payer to get them through these turbulent times.

"I think most tax-payers want to see the banks taking a similar approach to the businesses and indeed the homeowners who depend on them.

"Banks have a duty to society, to the social economy of persons as well as for the legitimate pursuit of their own profitability."

He called on banks to adopt a "more humane, social and collaborative approach" to economic growth.

The recently installed President of the Methodist Church, the Reverend Paul Kingston said that fairness should be the baseline for how banks need to deal with business.

"We are not asking for a return to the irresponsible lending practices of the past, but for a fair and just deal for viable businesses which are vital to our economic growth and the wellbeing of our community," he said.

Dr Norman Hamilton, Moderator of the Presbyterian Church in Ireland said that it was time for banks to make decisions which would have a positive impact on the lives of local people.

"Whilst the issues are complex in the current climate, the banks, like every other sector, must seek the welfare of the whole community and must see themselves as the stewards of the savings and investments of ordinary people whose jobs are often dependent on the small and medium enterprise sector," he said.

The Church leaders' call has the backing of business representative organisations Northern Ireland Manufacturing, the Quarry Products Association and the Trade Union ‘Unite’.

Northern Ireland Manufacturing Chief Executive Bryan Gray said that his members are reporting very serious difficulties in ‘normal’ dealings with their banks.

“Everyone understands that the days of banks throwing money at businesses are in the past," he said.

"But there must be a balance between risky lending practises and the new atmosphere where businesses are constantly battling to have a reasonable approach from their banks.

"The fact is banks currently are driving a highly aggressive pace to rebuild capital strength.

"The contention of many in the business community, particularly manufacturing and construction in Northern Ireland is this pace is ruthlessly aggressive and will prove fatal to many sound businesses which may fail if policy cannot be changed through agreement between the banking policy setters, the regulators and Government.

"Northern Ireland Manufacturing commends the Churches for this initiative and will supporting their efforts to take this initiative forward.”