Australian banking stocks gained Tuesday after a special government-appointed inquiry into the country's financial sector did not recommend breaking up any of the banks or interfering in the way they lend money.
The broader benchmark ASX 200 gained 1.95 percent to 6,005.9 as the heavily weighted financial subindex added 4.47 percent.
Still, the so-called Royal Commission recommended measures that would subject regulators to a new oversight body and also overhaul the financial industry's pay to remove conflicts of interest, Reuters reported.
"Despite a year of high drama, evidence of widespread greed, as well as a blistering Interim Report, the Hayne Royal Commission delivered a very pragmatic Final Report," analysts at Citi Research wrote in a note. "It avoided a radical industry overhaul, as well as avoiding widespread civil and criminal prosecutions."
"Of all the possible outcomes for the Major Banks, this is likely to be considered the best possible set of recommendations given the circumstances that the sector could have reasonably expected," the analysts added.