Sir John Key is calling for stricter regulations for banks regardless of the findings of a review due to be released next week.

The Reserve Bank and FMA are set to release their review of bank culture which is looking at whether New Zealand is facing the same issues as Australia. 

Speaking with Mike Hosking this morning, the former Prime Minister and ANZ chairman said New Zealand should follow Australia's lead and introduce the Banking Executive Accountability Regime, which regulates high-level bank staff.

He said under BEAR, senior staff in a bank are subject to very strict rules and have significant provisions if they fail to meet them, such as being struck off. 

"My view is that there is no reason why New Zealand bank directors and senior bank executives shouldn't be held by the same rules," Key said.

"New Zealand should implement them because whether we like it or not banks enjoy a very special place in our society, they underpin the fabric of our economy and let's be blunt, if things go wrong often Government's are involved in having to support them or bail them out."

He said Australia has found a number of holes in their banking system and New Zealand should take note.

"There's a fair question to say 'okay, is that different in New Zealand?' because let's be fair they are just about the same banks over here."

"There is an argument that says when the final report comes out from the Commission in Australia, why would the Reserve Bank and the FMA in New Zealand take a look at our legislation, cross reference what we have with what they have, and if there are holes that are identified from the Royal Commission in Australia, potentially move to implement those in New Zealand," the former Prime Minister said. 

However, Key said he is "very confident" in our banks and doesn't think New Zealand has Australia's problems.

"It's a slightly less complicated business. We don't have, for instance, the level of private superannuation they had in Australia, we don't have the suite of products they offer in Australia, particularly around tax," he said. 

"It's a very big business for New Zealand but it's smaller and more integrated into communities."

Australia's four big banks - Commonwealth Bank of Australia, ANZ, Westpac and National Australia Bank - as well as insurers and financial advisers, have been under the spotlight since March, when the first in a series of court examinations kicked off.

There have been revelations of irresponsible leading, sales of inappropriate products, fees charged for advice not given and even fees being charged to dead people. There has also been evidence of information being concealed from the regulators, and failures to rectify problems which have dragged on for years.

LISTEN ABOVE AS SIR JOHN KEY SPEAKS WITH MIKE HOSKING