The Regional Development Minister wants the banking sector to pay a $100 million levy each year to keep branches open in small towns.

Shane Jones said banks are closing their doors in the regions, claiming they can't afford to keep them open - despite billions of dollars in profits.

He says we're one of the few countries that don't already charge a levy on banks, with Australia expected to raise $1.5 billion each year.

Jones told Mike Hosking he has heard loud and clear that it's an issue for the regions.

"I'm not going to resile from the calls for action that I have had from the provinces. Now I know that basically, I've been bullied away by the stakeholders who want to defend the status quo but you're not going to shut me up on this issue."

Commerce Minister Kris Faafoi has a work programme to improve bank regulation, which Shane Jones' proposal will feed into.

LISTEN ABOVE AS SHANE JONES SPEAKS WITH MIKE HOSKING