Labor pushing for massive banker penalties

Labor leader Bill Shorten is looking to ramp up penalties against bankers and financial institutions who break the law.

The Leader of the Opposition Bill Shorten has big legislative plans to penalise bad bankers. (AAP)

Shonky bankers could soon be jailed for up to 15 years and corporate crooks fined up to $525 million.

In the wake of the damning banking royal commission, the Labor Party wants to significantly increase penalties against financial institutions who break the law.

The federal opposition will on Wednesday introduce amendments to overhaul existing laws, lifting jail time for corporate crimes from 10 to 15 years and more than doubling the proposed cap on financial penalties.

"Today Labor will fight for more jail time and increased penalties for banks and bankers who do the wrong thing," Opposition Leader Bill Shorten said.

Labor is framing its proposed penalties as a test for Scott Morrison after the prime minister voted against the banking commission 26 times.

"Only Labor will clean up the banks. We fought for this royal commission and we will finish the job by implementing the recommendations and increasing penalties for banks who do the wrong thing," Mr Shorten said.