Parliamentary hearings by the House of Representatives Standing Committee on Economics are expected to start next month.
The hearings were announced by Prime Minister Malcolm Turnbull as an alternative to the royal commission Labor called for during the election campaign.
The government said a royal commission would be expensive, long and would not help consumers.
Chair of the Economics Committee Liberal MP David Coleman said the parliamentary scrutiny would hold the big four more accountable.
“This change means every year the banks will be required to appear before the ... Economics Committee and answer wide ranging questions on different issues.
"This is not a one-off thing, this is a permanent change to the oversight of banks," Mr Coleman told SBS.
“It will be rigorous and good for transparency. Obviously there have been some very concerning activities in the sector in recent times."
He said that banking CEOs should expect difficult questions.
“One issue is the capacity of consumers to get compensation when things go wrong in the banking system.”
“The government is looking at a banking tribunal potentially to add to the existing mechanisms like the Financial Services Ombudsman.”
“Another important area to look at it competition, to consider if things can be done to further improve competition, because that is good for consumers.”
Shadow Assistant Minister for Treasury Matt Thistlewaite said Labor is still trying to push for a royal commission.
"The Australian people have lost trust and confidence in the Australian banking and financial sector,” Mr Thistlethwaite said.
“They are sick and tired of the scandals and the unethical behaviour. They want a full inquiry into what is going on and we believe the best way to do that is through a Royal Commission."
Nevertheless, Mr Thistlethwaite said Labor committee members would be asking the tough questions when the bank bosses arrived in Canberra.
"I will be asking members of the community the questions they want me to put to banking executives when they do appear before us."
Steven Munchenberg from the Australian Bankers’ Association said he hoped to deal the problems raised.
“We think the real thing for the committee and banks to focus on is what are the real issues ... not the politics around this,” Mr Munchenberg told SBS during a visit to Parliament House this week.
When asked about the political focus on the banks, Mr Munchenberg conceded it was a challenging time for Australia’s banking sector.
“If it is about what are the real issues and how can we fix them I think it will be a worthwhile exercise.”
"We don't like attracting so much political attention, we are concerned that some of that could be counterproductive.
"Some of the attacks on the industry potentially undermine confidence in the industry and that is not a good thing" he said.
