The Association of Medical Research Charities (AMRC) has cut its financial ties with HSBC, after the bank refused to guarantee that it would not withdraw banking facilities from the association's 112 member charities.

The initial cost will only be a few hundred thousand pounds in the AMRC bank account, but the move has the support of the Welcome Trust, the AMRC's largest member, with £13 billion in assets.

Charities, universities and some of the world's largest pharmaceutical companies may follow suit.