Opposition Leader Bill Shorten has announced an incoming Labor government would hold a royal commission into misconduct in the banking and financial services industry.

Mr Shorten said shadow cabinet has endorsed the move, and the decision has not been “made lightly”.

Labor has called on the Turnbull government to make the same commitment.

• PM ‘quick’ to dismiss bank probe
• TV stunt ‘endangered children’: father
• Help us find ‘man in the hat’

“Many Australians have suffered through the decisions of banks and financial institutions,” Mr Shorten said.

“Retirees who have lost their retirement savings, small businesses who have lost their livelihood, Australian families who have lost hundreds of thousands of dollars, life insurance beneficiaries, denied justice and legitimate claims.

“There are literally tens of thousands of victims, if not more.

“Today I say enough is enough. This string of scandals has to stop.”

But, on Thursday, Treasurer Scott Morrison confirmed the government was not proposing a bank inquiry, accusing the Opposition of “seeking to play politics” in order to divert attention from union corruption.

He was echoed by Finance Minister Mathias Cormann, who said he saw no need for such an inquiry because white-collar criminals were already subject to harsh penalties.

Shadow Treasurer Chris Bowen, who was also at the announcement in Melbourne on Friday, said a commission would place into the spotlight how widespread illegal and unethical behaviour was within the industry and how regulators could deal with these

“It is in that tradition that we will implement this in office,” Mr Bowen said.

Nationals MP John Williams has long advocated for a royal commission.

He said he hoped Mr Shorten’s announcement would increase pressure on the government to act.

– with ABC