Both Labor and the Liberal Party have confirmed they will continue to accept donations from banks, a day after the banking royal commission's final report recommended a radical overhaul of the sector.

Two of the major banks have been referred to regulators for likely criminal conduct, raising questions about whether the major parties should continue to accept nearly $1 million in political donations ahead of a federal election in which former High Court judge Kenneth Hayne's report will be a crucial battleground.

Commissioner Kenneth Hayne and Josh Frydenberg at a photo opportunity on Friday. Credit:AAP

"[Banks] should be allowed, like any other legal institution in our community, to support political parties," Treasurer Josh Frydenberg said on Tuesday.

"Don't think it's the Liberal Party that is receiving financial donations from the banks and not the Labor Party."