Now Turnbull says how high should he jump. Now the Banks say have a commission.
"A government's policy remains the same until it is changed," Mr Turnbull said when asked if this was a backflip for the government.
"The political environment has created a sense of inevitability about an inquiry ... We have to act in the national interest, protecting Australia's economic future."
Opposition Leader Bill Shorten said Mr Turnbull had spent 601 days fighting Labor's call for a royal commission into the banking and financial sector.
"It says everything about Turnbull's values and priorities that he only agreed to Labor's royal commission when the banks told him he had to," he said in a statement.
"He ignored the pleas of families and small businesses, he rejected the words of whistle-blowers. "When the big banks wrote him a letter, he folded the same day."
"Turnbull has always been - and always will be - on the side of the banks."