Banks are standing by their right to make a profit ahead of a new Commerce Commission inquiry.

The Government has ordered the commission to conduct a "market study" into the banking sector's fees and profits, with a report due back in August next year.

Further details of the scope and timeline of the investigation will be released this afternoon.

Banking Association Chief Executive Roger Beaumont told Mike Hosking the banking sector welcomes the study and stands by its practises.

He says banks are enormous businesses, and there is nothing wrong with them making large profits.

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