The Turnbull government has asked the Productivity Commission to hold an inquiry aimed at ensuring Australia's financial system is competitive and innovative.
It will form part of the government's response to the Financial System Inquiry that was conducted by David Murray in 2014.
The commission will consider how to improve consumer outcomes, the productivity and international competitiveness of the financial system and economy more broadly.
It will look at the level of concentration in key segments of the financial system while examining competition in the provision of personal deposit accounts and mortgages, as well as services and finance to small and medium businesses.
The inquiry will start on July 1 and is due to report to the government a year later.