Banks face clampdown

THE banking royal commission may call for another regulator in its final report next year, industry experts say.

Analysts at investment bank Macquarie say negative sentiment in the banking sector is likely to persist after the interim report, released last week, was “more damaging than expected”.

Looking toward a final report, due next February, they say the commissioner Kenneth Hayne would likely recommend an additional regulatory oversight body, not to mention dishing out more fines, they said.