Royal commission targets major banks

The financial services royal commission is targeting the major banks over alleged cases of home loan fraud, unsuitable credit card limit increases and their car financing practices.

The big four banks will all feature prominently in the inquiry's first round of public hearings focusing on inappropriate or unsuitable lending in home loans, car loans and credit cards.

A number of consumers will give evidence at the hearings that begin in Melbourne next month, the commission said on Monday.

National Australia Bank, Commonwealth Bank, Westpac and ANZ all feature in a list of case studies to be covered in the hearings.

The inquiry will also examine the banks' arrangements with their intermediaries.

A number of the issues have already been investigated and/or addressed by regulator the Australian Securities and Investments Commission and the banks.

The royal commission listed the case studies as:

* NAB's Introducer Program, where it pays commissions to accountants and financial planners for successful lending referrals, and alleged fraudulent home loan applications;

* Alleged fraud by brokers connected to the CBA-owned Aussie Home Loans, as well as the bank and Aussie's broker arrangements;

* The car finance practices of Westpac and its subsidiary St George, plus ANZ and its former business Esanda;

* Westpac over unsuitable credit card limit increases and Citibank over international transaction fees;

* CBA credit insurance for home loans, personal loans and credit cards;

* Unsuitable pre-approved overdraft offers by ANZ and account administration errors by the bank; and,

* CBA for unsuitable overdraft facilities and the failure of automated systems.

The hearings run from March 13 until March 23.