The UK's banking sector is growing at its fastest rate since before the financial crisis, according to research by the Confederation of British Industry and PricewaterhouseCoopers.

More than a third of UK banks increased their business volumes over the last quarter compared with just 9% that saw volumes fall. Overall profitability of the banking sector also increased for the fifth quarter in a row.

"While the banks are broadly in good shape, business is still constrained by the economic environment," said Andrew Gray, UK banking leader at PricewaterhouseCoopers.

This news will further frustrate small and medium-sized business owners who are still finding it difficult to access funds from the UK's banks.