Labor party leader Bill Shorten is vowing to push for a Royal Commission into misconduct in the banking and financial services sectors if the government continues to brush aside its call for an inquiry.  Although this pushes the issue to the front and center of this year's Federal election, Mr. Shorten says he's willing to work with the government on a bipartisan solution before the balloting.

"Many Australians have suffered through the decisions of banks and financial institutions," Opposition Leader Bill Shorten told reporters in Melbourne on Friday.  "Today I say enough is enough," he said.  A day earlier, Mr. Shorten called on Prime Minister Malcolm Turnbull to "start listening to what every day Australians are saying and they don't like the bad behavior of banks".

Senior members of Labor had been discussing the need for a Royal Commission for several weeks, but this week's allegations that Westpac Banking Corporation manipulated the bank bill swap rate added urgency to the matter.  Global credit rating agencies are on alert about alleged conduct breaches at Australia's banks. 

But the government claims to have the matter under control, and says a Royal Commission would risk confidence in the banking sector as well as would send the wrong message to offshore investors.

"You need to have a proportional response that deals with the problem," aid Treasurer Scott Morrison.