One Nation senator Pauline Hanson says prison time should be considered for bank executives who have been found guilty of misconduct.

“If they are found guilty of gross mismanagement, and conduct of actually destroying people’s lives, I think it should seriously be looked at,” she told reporters before attending the royal commission into financial services.

She said she felt compelled to observe the proceedings as a show of support for people who have been victims of banking misconduct.

AAP

Senator Hanson said she would like to see a more in-depth investigation into receivers' and lenders’ mortgage insurance.

“I hope it is opened up a lot further for people to have their say," she said.

“I know a lot of Australians, those ones who have lost their homes, who have lost everything, I think they’d come down very, very heavy in penalties on those people who are responsible for this.

“Forged signatures, foreclosure on properties … there have been suicides, there have been deaths, you can never get that back.”

Senator Hanson has previously called for the banks to pay the costs of the royal commission and to also provide compensation to members of the public who lost their properties.

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She said victims have suffered enough.

"What has been exposed by the royal commission is clear evidence that the banks and the financial sector have not done the right thing by the people of this country," she said.

Speaking alongside Senator Hanson, One Nation senator Peter Georgiou said bankers who have broken the law should be punished.

“If they’re found to be fraudulent they need to be held accountable like everyone else, and yeah, face jail time if that’s the case.”