Prime Minister Malcolm Turnbull has pushed back against renewed moves for a powerful inquiry into Australia's banks, reiterating the government's opposition to a royal commission on the grounds that it would not offer any immediate solutions for the scandal-plagued sector.

Mr Turnbull's rejection of the idea persists even though a commission of inquiry - similar to a royal commission but reporting to the Parliament rather than the government - has emerged as a distinct possibility with the support of a handful of maverick Nationals MPs.

"I can tell you we have as a government decided not to have a royal commission, we made the decision a long time ago, not because we don't believe there is nothing going on in terms of problems with the banks, it is because we want to take action right now and we are," Mr Turnbull told Channel Seven's Sunrise program.

Faced with the prospect of Coalition MPs crossing the floor in defiance of the government's policy, Mr Turnbull's cabinet has discussed the idea of dropping its opposition to a royal commission, The Daily Telegraph reported on Wednesday.