Senior Liberal MP Christopher Pyne has issued a dire warning to his Coalition colleagues in the Nationals as they push for a banking inquiry: "Disunity is death".
Nationals senator Barry O'Sullivan is preparing a move for a parliamentary commission of inquiry into the banking sector which is likely to win majority support in both the upper and lower houses.
Prime Minister Malcolm Turnbull has reiterated his opposition to an inquiry into the banking sector.
Mr Turnbull says other issues, including same sex marriage and citizenship, must be national priorities.
Giving in from the pressure from within, the Prime Minister Malcolm Turnbull announced the government's decision for a Royal Commission into the banks and financial services sector, saying it is regrettable but necessary.
The federal government has been resisting calls from the opposition for a royal commission for the last 18 months.
But has now changed its position, after a letter released by the Big Four Banks today called for the federal government to set up a properly constituted inquiry to ensure confidence in the financial system.
Mr Turnbull says the government has been forced to act to end the speculation about an inquiry.
