An expert says a probe into banking may not be the fix for issues in the sector.

Latest figures from KPMG show bank profits reached a record high $7.15 billion in the year to September, up 17 percent on the year before.

It comes after the Government voted against a select committee inquiry into banking, instead considering whether to order a Commerce Commission market study.

Squirrel Mortgages' David Cunningham told Mike Hosking an inquiry probably wouldn't create much change.

LISTEN ABOVE

• No deal for National’s banking inquiry
• Professor: Inquiry into bank profits may not be job for Commerce Commission