A parliamentary committee has called for tribunal to be established to help victims of Australia’s banks, following its inquiry into the big four.

Bank chief executives were hauled before the Lower House committee last month after failing to pass on a Reserve Bank rate cut earlier this year.

The government-dominated inquiry has made 10 recommendations, which also include letting the public and customers know about licence breaches and dodgy financial planners.

Committee chairman and Liberal MP David Coleman said the tribunal should be funded by the sector and operating by July next year.

“A banking tribunal will be a one-stop shop that allows individuals and small businesses to gain recompense when they are wronged by a bank,” Mr Coleman, the Member for Banks, told Parliament.

“The current system does not provide consumers with a simple means of redress.

“A banking tribunal will provide practical relief to people with legitimate cases against banks.

“We should establish a banking tribunal, and it should be in place by July of next year.”

The body would replace the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

Prime Minister Malcolm Turnbull has previously flagged the creation of a banking tribunal following calls from Coalition backbenchers.

Tribunal proposal ‘half-baked’

Labor rejected the committee’s findings, instead issuing a dissenting report that had only one recommendation — establishing a royal commission into the financial sector.

“Labor has been listening to the victims — the Australian people — who are fed up with the actions of the banks and want something done about it,” deputy committee chairman Matt Thistlethwaite said.

“They want greater scrutiny of banking practices, they want the bank rip-offs to stop, they want the bank culture to change and they want redress for victims when they fall foul of this insidious banking culture.”

Liberal MP David Coleman who headed the parliamentary committee. Photo: AAP.

Mr Thistlethwaite said a banking tribunal was not good enough.

“This proposal is half-baked — it raises more questions than it answers,” he said.

“It’s clear the fix was on, that this tribunal was discussed between banking representatives and members of the Government prior to the inquiry even being established, clearly as a way to avoid a royal commission in Australia.”

– ABC