THE Institute of Directors has backed Government measures to promote greater competition in the supply of banking services to small and medium-sized businesses.

While the Government is to adopt some of the measures proposed after an inquiry into banking practices by the Competition Commission, it will not impose more drastic proposals which included imposing a windfall tax on profits.

The IoD said such measures would have been disproportionate and unwarranted, not least because the vast majority of IoD members have said they have a good relationship with their banks.