Scott Morrison is bringing himself undone over his hapless attempts to convince Australians that there is no need for a Royal Commission into the banks.

If you believe ScoMo, a Royal Commission into the entire banking sector is not action, but a single inquiry into just one bank is real action.

While Labor welcomes today's announcement by APRA to establish an independent inquiry into the Commonwealth Bank following years of scandals and the recent serious allegations of corporate failings by AUSTRAC, we still strongly believe a Royal Commission is needed.

Over the past 18 months alone we have seen more than $300 million in fines or compensation paid from across the banking and financial services sector.

The simple fact is we need to ensure Australia's banking system is customer focused and the best it can be across the board.

The question now is when will the Turnbull Government act in the interests of Australians and establish a Royal Commission.

Not even the serious allegations of breaches of anti-money laundering and anti-terrorism funding laws by Australias largest bank have been enough to convince the Prime Minister to establish a Royal Commission.

What is it going to take?