Banks inquiry risks reputation: Morrison

Treasurer Scott Morrison says Labor is undermining the international reputation of Australia's banking and financial system by pushing for a royal commission.

The federal opposition plans to ask parliament, which opens on Tuesday, to endorse a royal commission into banks.

"In the international community they are asking: 'What is wrong with Australia's banking and financial system? Is there some weakness in the system?' That is playing with fire," Mr Morrison told reporters in Canberra on Tuesday.