The UK Treasury has called for changes to how companies of all sizes raise crucial funding in a bid to break their over-reliance on banks, potentially hastening one of the greatest shifts in corporate finance activity in the country.

In a discussion paper published by the Treasury yesterday, Paul Myners, financial services secretary, said a more "diverse funding market, where large and mid-size firms can go directly to markets or have options other than banks when they are looking for support, would clearly be an advantage to the UK economy, not just in economic slowdowns".