MPs reaffirm ideas to stop bank misconduct

Despite hauling bank bosses to Canberra for another round of hearings a government-led parliamentary committee is sticking by its previous recommendations for stamping out misconduct.

The latest report from the House of Representatives economics committee, tabled on Friday, reaffirms 10 ways to improve the banking system for consumers, and calls again on the government to implement them.

They include:

* Establishing a banking tribunal.

* Making executives more accountable, by having Australian Financial Services licence holders to publicly report on any significant breaches of their obligations within five business days of reporting the incident to ASIC.

* Having the Australian Competition and Consumer Commission establish a small team to make recommendations to the treasurer every six months to improve competition.

Committee chairman David Coleman said the second round of hearings in March had been useful to scrutinise the banks on previous recommendations.

"In particular, it is important that the committee's recommendations on executive accountability, creating a new focus on competition, and opening up of consumer data are acted upon," the Liberal MP said in a statement.

Mr Coleman noted ANZ had been more constructive than the other banks, who argued against recommendations for a new executive accountability regime and an increased focus on competition.

The committee also recommended non-monetary default clauses be abolished for loans to small business.

Labor senators submitted a dissenting report, criticising the 20 minutes committee members were allowed to grill each bank chief.

They renewed opposition calls for a royal commission, including looking into how widespread instances of illegal and unethical behaviour within Australia's financial services industry are.

The Greens too repeated their previous recommendations, including the need for a royal commission.

But the minor party also wants the Australian Prudential Regulation Authority to conduct a "climate stress test" of each of the big four banks, assessing their preparedness to deal with climate change.