Treasurer Scott Morrison is pushing ahead with tough rules for bank executives, including making them register with the banking regulator.
"Banks and their executives must be held to account for any dishonest or scandalous actions that hurt customers and staff, or damage their company's brand," Mr Morrison told News Corp on Tuesday.
The Australian Prudential Regulation Authority will have powers to deregister executives involved in "scandalous" behaviour that could damage the industry's reputation.
The move is part of measures announced by Mr Morrison in the 2017/18 budget handed down on May 9, which also outlined a levy on banks to raise $1.5 billion a year for budget repair.
The measures include a new Banking Executive Accounting Regime, requiring all senior executives to be registered with APRA.
If they breach the regime, executives can be deregistered and disqualified from holding executive bank positions and stripped of annual bonuses.
The changes also allow for banks to be fined up to $200 million if they "hide" executive misconduct.
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