Big four and financial watchdogs would have to develop royal commission plans by August

Banks and regulators forced to report every six months under Labor plan

Banks and financial regulators would be forced to report every six months on their progress fixing cultural problems exposed by the royal commission under a plan proposed by Labor.

Financial firms would also be named and shamed in decisions by the Australian Financial Complaints Authority when it decides in favour of customers if Labor is elected.

On Tuesday Labor released bills to implement five Hayne royal commission recommendations before the election but the opposition is yet to win the crossbench votes needed to recall parliament and also faces a substantial pushback from mortgage brokers about its support for banning trailing commissions.

Under the Labor plan, the big four banks, Australian Banking Association and financial regulators, Apra and Asic, will be required to develop royal commission implementation plans by 1 August.

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Stakeholders will have to report on their progress to Labor’s proposed royal commission implementation taskforce in the treasury department every six months.

The chief executives of the big four banks and the ABA will also have to report to the House of Representatives economics committee and attend public hearings every six months.

Bill Shorten said: “Only Labor can be trusted to clean up the banks – we’ve got draft legislation on the table to protect Australians and we’ll make banking execs front up to parliament and explain what they are doing to clean up their act.”

Shorten warned the royal commission report “can’t be left to gather dust on a bookshelf”. “Labor fought for this banking royal commission and we will continue the fight to make sure consumers are protected and the banks aren’t let off the hook.”

On Tuesday the treasurer, Josh Frydenberg, responded to Labor’s bills by noting they implemented five recommendations, “a mere 6%” of commissioner Kenneth Hayne’s proposals.

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Scott Morrison said the Coalition would not “engage in reckless legislation” but is responding to all 76 royal commission recommendations “in a measured way, consulting to ensure there are no unintended consequences”.

Shorten said Morrison and the Coalition voted against the royal commission 26 times and “he continues to not clean up the banks by continuing with his part-time parliament”.

Labor is yet to announce how it will implement the Hayne recommendation to ban trailing commissions for mortgage brokers.

The shadow treasurer, Chris Bowen, who initially indicated Labor would accept the recommendation – unlike the government, which expressed reluctance about implementing a user-pays system – hedged on Tuesday when asked what Labor would do with the politically influential sector.

Bowen said Labor was “taking our time to carefully consult with all relevant parties and we’ll have more to say in coming days about our proposed approach”.

“We will be fully transparent and explicit in our approach, not only well before the election, but in the immediate future”.