As the royal commission into banking misconduct continues, the New Zealand Financial Markets Authority and the Reserve Bank have asked the CEOs of the country's Australian-owned banks to prove they are better behaved than their Australian parents. FMA CEO Rob Everett told RNZ that he and RBNZ governor Adrian Orr had spoken individually to the CEOs of ANZ NZ, ASB, BNZ and Westpac yesterday (Tuesday). Describing the revelations from the Hayne royal commission as "devastating for the industry", Everett said it was "not credible to just say that New Zealand is different."The CEOs were told they would have to "demonstrate why either the business structures here [in New Zealand] or your business practices here lead to different outcomes."They have been asked for "assurance, including in writing, as to the processes they've followed to check themselves against what's coming out of the royal commission," Everett said."We've asked them to provide assurances … that they have scrubbed their business models and that they have a basis for being confident that these issues don't exist here."However, Everett said he did not believe New Zealand should immediately launch its own royal commission or inquiry into misconduct by banks and financial institutions. He said he would rather let current work (including the financial advice bill currently in select committee and the FMA's own work programme) progress "before anyone leaps to any conclusions about whether or not to have an inquiry". It is a turnaround from last month, when Orr, as incoming RBNZ governor, assured media that the culture within New Zealand's banking sector was "infinitely better" than that in Australia with its "problem" banking culture.Orr said then that he didn't see any lack of confidence in New Zealand's banks. That may change as the reports continue out of the Australian royal commission. The NBR yesterday detailed the advice given to a disgruntled customer by an ANZ NZ representative which recommended all or most of their savings be invested in ANZ products, despite many other products being a better deal for the investor.