Banks inquiry would 'only benefit Shorten'

Treasurer Scott Morrison says the only beneficiary of a royal commission into the banks would be Opposition Leader Bill Shorten, not the victims of bank misconduct.

Mr Morrison denied Labor's demand for a royal commission into the banks forced the government to act in boosting resources for the corporate watchdog, the Australian Securities and Investments Commission.

He said this boost to ASIC capabilities would produce an immediate result.

"People's concerns are not going to be alleviated by what I'd describe as a cynical exploitation of people's genuine concerns and the politicisation of their pain by Bill Shorten," he told ABC television on Wednesday night.

"The only person who will benefit by this proposal is Bill Shorten."

Mr Morrison said the government initiated a review of ASIC capability last July, just a month after Labor senators voted against a royal commission.

"What we've done today, which has been the end of a very long process, is increased the powers of the cop on the beat to do the right thing," he said.