Banks are being urged to play their part in bringing about an end to the current recession by reducing the cost of borrowing as it is revealed that the gap between the rates they charge and the rates they borrow at is at an all time high.

And it's consumers, homebuyers and home owners that are being hit hardest. Banks are charging an average of 4.46% for fixed rate mortgages, 18.97% for an overdraft and 13% for an unsecured loan - while the GBP 3 Month Libor rate (the amount the bank has to pay to borrow) stands at just 0.6%.

At the same time, the average savings rate on an ISA is just 0.41% - a tenth of what it was a year ago - and that for a standard savings account costing banks just 0.15%.

While Philip Hammond, the shadow chief secretary to the Treasury, and John McFall, the Labour chairman of the Commons Treasury select committee have suggested that banks need to do more to help the consumer, stop profiteering and free up the flow of credit, the Financial Services Authority has been urging banks to rebuild their cash reserves - and it is from consumers that they appear to be doing so.