The Prime Minister has written to Bill Shorten, asking him to call off the push for a royal commission into the banking sector.

Malcolm Turnbull and Treasurer Scott Morrison are working on a “level playing field” tribunal that will let the government sort out issues between banks and their customers.

“I have two practical proposals for you to consider,” Mr Turnbull wrote to Mr Shorten.

The first is to get Labor's “keenest minds” on a parliamentary committee that will speak to the heads of the major banks on an annual basis.

The second proposal was to let Mr Shorten present senior government ministers with any additional measures has that might help protect consumers.

“Given your long experience in the financial services portfolio I am sure you have more immediate and practical proposals for reform than simply calling for an inquiry,” Mr Turnbull wrote.

The Prime Minister’s letter adds to weight being placed on the Opposition to back its rhetoric about dodgy banks and financial scandals.

Earlier this week, the Australian Bankers' Association (ABA) accused Mr Shorten of misleading by claiming complaints about the finance sector had risen by 60 per cent from 2009 to 2015.

The ABA said Labor’s figures released were “very selective”, and that complaints against banks have actually fallen by 11 per cent over the past four years.

“The figures they've released fail to take into account that the Financial Ombudsman Service (FOS) jurisdiction was increased significantly a couple of years back,” ABA chief Steven Muchenberg said.

“And that means that a lot more customers can now raise their concerns with FOS, which is actually a good thing for customers.”

Mr Munchenberg said the sector was improving itself.

“We know what the issues are, we have acknowledged the issues, and we're getting on an action fixing those issues,” he said.

“And a royal commission also does run some risks particularly in the minds of international investors and whether they invest in Australia.

“It does call into question our level of confidence of the policies of successive governments, the quality of our regulators, and our bank management. So, it's both unnecessary and risky.”

Meanwhile, the Finance Sector Union (FSU) has backed the call for a royal commission, saying the “relentless pursuit of profits” by banks is hurting customers.