Financial stocks tank after the Australian government announces a banking royal commission

Peter Parks / AFP / Getty Images

Shares in the big banks have been hit in early trade, led by Commonwealth Bank which is down more than 2%.

It follows the unexpected announcement of a Royal Commission into the banking sector this morning, a major policy reversal by the Turnbull government.

A short time ago, Commonwealth Bank was down by 2.45% while Westpac was more than 1.8% lower. Shares in ANZ and NAB were both down by around 1.3%.

Suncorp was also more than 1% lower while the regional banks were faring slightly better, with Bank of Queensland down 0.45% and Bendigo & Adelaide Bank just 0.2% lower.

The broader market is down by around 0.6% in morning trade, led by the falls in financials:

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