Banks must start lending again to households and businesses, or face being named and shamed, according to the Treasury Select Committee chairman.
Demand for full-scale nationalisation of more banks could also grow if loans were not made, John McFall said.
The government announced a £37bn recapitalisation for three banks last month - but lending has not picked up.
"Banks have a responsibility to society which they must fulfil," Mr McFall wrote in the Daily Telegraph.
"They should acknowledge that responsibility and start lending - now".
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BBC NEWS | Business | Banks 'must kick-start lending'
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