Go hard on banks: Frydenberg to regulators

Treasurer Josh Frydenberg has flagged another inquiry in three years to ensure the big banks and corporate regulators have pulled up their socks.

Josh Frydenberg says banks must change their cultures if they are to regain community trust. (AAP)

Treasurer Josh Frydenberg has told corporate regulators to ramp up court action against the financial sector in the wake of the banking royal commission.

Mr Frydenberg also warned the banks they must change their cultures if they are to regain community trust.

He has flagged a fresh industry inquiry in three years to ensure they improve their behaviour and treat customers better, the Australian Financial Review reported on Thursday.