Cameron to launch parliamentary inquiry into banks scandal

Prime Minister David Cameron says will establish full parliamentary inquiry into bank rate-fixing scandal.

"I want us to establish a full parliamentary committee of inquiry involving both houses," Prime Minister David Cameron told parliament, stopping short of giving further details on its full remit.

"This committee will be able to take evidence under oath, it will have full access to papers and officials and ministers including ministers and special advisers from the last government."

The government has come under increasing pressure to take a closer look at the bank sector, which has felt the force of public anger since taxpayers bailed out several banks during the 2008-9 financial crisis.