Federal members of the Nationals may consider adopting an inquiry into the banks as formal party policy at a party-room meeting next week, deviating from Turnbull Government policy.
Nationals leader Barnaby Joyce said the party was "only too willing" to consider adopting the inquiry but not until after he survives the by-election in his seat of New England this weekend.
"It is always the right of the party room to bring up these issues," Mr Joyce told the Guardian.
A growing number of Nationals have voiced support for a powerful Commission of Inquiry into the banking sector in recent weeks, despite the Turnbull Government being strongly against the idea.
Both Labor and the Greens support a Commission of Inquiry, which would have the power to call witnesses and force the banks to hand over documents.
Nationals Senator Barry O’Sullivan said he intends to introduce a private members' bill to trigger the inquiry once the Senate has finished debating legislation to legalise same-sex marriage.
His colleague George Christensen has already indicated he would cross the floor to vote in favour of the inquiry. A third National, Senator Llew O'Brien, told The Australian he was "open-minded" about the proposal and would be "speaking to [his] colleagues" before making a final decision.
The Nationals party-room is scheduled to meet on Monday next week.
Senator O’Sullivan said he expects “as many as four” Coalition MPs in the Lower House to cross the floor and vote for the Commission of Inquiry, which is similar to a Royal Commission but reports to parliament as a whole rather than just the government.
Fellow Queensland LNP member Michelle Landry has also suggested she would consider the proposal.
“I do think we need to look at some of these issues with the banking sector,” she told ABC Radio.
The Turnbull Government does not support a banking investigation, arguing the exercise would be expensive and slow, and that there are more effective bodies already resourced to keep banks accountable, including the Australian Securities and Investment Commission.
Not everyone in the Nationals supports the idea, though.
Resources minister Matt Canavan said a Commission would be a waste of time that would "turn into a bit of a lawyers' picnic".
Turnbull reportedly considers compensation fund
Treasurer Scott Morrison has reportedly been working on a scheme to quell some public dissatisfaction with the banking sector by setting up a compensation scheme for Australians who have been ripped off by banks.
A tribunal would reportedly consider historical cases and consider claims for compensation. The banks would contribute to the pool of money.
None of the details have been confirmed by the government.
“For some years now I've been talking to the banks about resolving some legacy cases where people have had issues,” Mr Morrison said on Thursday.
Labor leader Bill Shorten said the opposition would consider supporting a compensation scheme.
“A compensation process is one that we will look at constructively,” Mr Shorten said on Monday morning.
“But that’s no guarantee of stopping the problems in the future. If you want to stop the problems in the future you’ve got to understand and stop the misconduct in the past, and a Royal Commission has the powers to look behind the corporate veil.”
