'Deputy Prime Minister and Liberal Democrat leader Nick Clegg is ordering an investigation into the issue after allegations that black entrepreneurs and those from ethnic minorities face higher interest rates even if banks give them loans. Clegg, however, is refusing to recognize the scandal in the banking system as institutional racism saying the issue is a moral and economic setback that should be dealt with.

The concerns have been raised after a survey by the Black Training and Enterprise Group found that only 6 percent out of the 35 percent of people with black African backgrounds who want to set up their own businesses succeed.

This comes as a separate study by Minority Ethnic Enterprise Centre of Expertise said the chances that “white firms” secure bank loans are four times greater than those of companies headed by directors with black African origins.'

Read more: Banks Face 'Racist' Lending Probe