Penalties for banking crime set to rise

Banking crime perpetrators are set to receive greater penalties, with the government planning to introduce legislation to come down hard on white collar crime.

Treasurer Josh Frydenberg says the government will look to double penalties for white collar crime. (AAP)

The banking royal commission is already taking effect, with plans to introduce legislation to increase penalties for white collar crime this week.

Treasurer Josh Frydenberg says the government will look to double penalties and individuals could receive up to 10 years in jail - up from five.

"Just because you wear a suit to work doesn't mean you'll escape jail," Mr Frydenberg told 2GB Radio on Monday.