What more do banks have to do?: Labor

Labor wonders what the banking industry has to do before the federal government calls a royal commission into any misconduct.

Treasurer Scott Morrison insists the government has left all options on the table to deal with the "epic failure" of the Commonwealth Bank board which is engulfed in another financial scandal.

But he ruled out a royal commission into the banking sector following CBA's alleged 50,000 breaches of anti-money laundering laws.

Action needed to be taken now, Mr Morrison said, citing the government's decision to increase the powers of the Australian Securities and Investments Commission and making senior bank executives more accountable.

In contrast, a royal commission would be a three-year "lawyers' picnic".

The government won't be rushing its response out of concern it may frustrate financial transactions regulator AUSTRAC bringing the bank to court.

"That is priority one," Mr Morrison said on Thursday.

"We are not going to give the Commonwealth Bank any leave passes by any actions we might take."

But shadow treasurer Chris Bowen said the treasurer had taken the "biggest and best" option off the table in ruling out a royal commission.

"How much more evidence does the government need?" he asked.

Questioned about the position of CBA boss Ian Narev, Mr Bowen said neither the treasurer or alternative treasurer choose bank chief executives.

"What you do is move policy levers and the policy lever the treasurer has available is a royal commission," he told reporters in Canberra on Thursday.

"Mr Narev's position is between him and the board."