Former High Court Judge Kenneth Hayne will lead the royal commission into the banking, superannuation and financial services industry, the government has announced.

Mr Hayne sat on the High Court bench from 1997 until 2015. In announcing his appointment, Prime Minister Malcolm Turnbull described him as being "renowned for his brilliant mind, his forensic skill, and his deep sense of justice".

"Mr Hayne's wealth of experience at the highest levels of Australia's judiciary makes him the ideal person to conduct this Royal Commission," the Prime MInster said.

Former High Court Judge Kenneth Hayne will lead the royal commission into the banking, superannuation and financial services industry. John Woudstra

After being forced into a backdown by a Nationals revolt, Mr Turnbull announced on Thursday a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

It has been established to consider the conduct of banks, insurers, financial services providers and superannuation funds but not self-managed superannuation funds.