Bank executives will face closer scrutiny under new federal government measures targeting salaries and accountability.
The Banking Executive Accountability Regime (BEAR) will be established from July 1 after the Senate voted overwhelmingly in favour of the bill on Wednesday.
Under the laws, banks will be required to conduct themselves with honesty and integrity, while remuneration obligations will also be imposed on directors and senior executives.
From July banks will be required to register their senior executives and directors with financial regulator APRA, and provide greater clarity regarding their responsibilities.
The banking regulator will have beefed up powers to hand out substantial fines, withhold bonuses and more easily disqualify people for poor behaviour.
Treasurer Scott Morrison said the measures would encourage good behaviour and ensure banks and individuals are held to account if they failed to meet the standards expected of them.
