The Prime Minister has back-flipped and ordered a Royal Commission on Australia’s banking sector.

For the best part of two years, the federal government has resisted calls for a Royal Commission on Australia’s banks, arguing regulations to improve bank behaviour had been strengthened.

But the “big four” banks wrote to the government asking for an inquiry, declaring it in the national interest.

Julia Angrisano, national secretary of the finance sector union, told Neil Mitchell nothing had changed.

“The pressure to sell products to customers that they don’t need is as acute today as it was 12 months ago,” she said.

“That’s why we need to get to the bottom of it.”

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