One Nation senator Rod Culleton has come away from a meeting with Malcolm Turnbull confident there will be an inquiry into the banks.
Senator Culleton met with the prime minister in Canberra on Friday where he presented his evidence behind the need for a royal commission into alleged misconduct by banks.
"I cannot at this stage see him not acting on that evidence," Senator Culleton told reporters.
Senator Culleton said the prime minister had told him he was concerned a royal commission would "drag out for years".
The West Australian senator had responded that the prime minister can "call it whatever he likes", hinting that he would accept an inquiry with similar powers to royal commission.
Mr Turnbull has previously rejected Labor calls for a royal commission into the banks.
"I'll be working with him very closely now, and his staff, to get a result," Senator Culleton said.
"The ball is in Malcolm's court."
The former WA businessman wants a six-month probe into better customer protections, bank compliance with international standards, a redress scheme for victims of banking misconduct and the effectiveness of regulators.
Addressing the alleged misconduct of banks, especially in relation to farmers, was a key issue in his election campaign.
The government will release within the next fortnight an interim report of its own independent review into better ways to resolve bank customer complaints.
Mr Turnbull has promised a one-stop shop to replace the current complex system of consumer complaint tribunals and commissions.
But a spokesman for the prime minister said on Friday there would not be a banking royal commission.
