The federal government's much-awaited banking reform measures would be known anytime next week as Federal Treasurer Wayne Swan hinted that changes in the industry would be dealt with one at a time.

Swan told a business forum in Brisbane on Wednesday that the Australian business community should not expect a one-fell swoop sort of banking reforms as he pointed out that even to these days, the effects of the worldwide economic downturn must be factored in when implementing institutional reforms in the industry.

Part of that, according to Swan, is the deliberate steps that would enhance banking competition, which he reminded is not a simple task for the federal government.

In his speech before the Financial Services Council Deloitte Leadership gathering, Swan reiterated that the government is surely bent on effecting its banking reforms program but noted that "we're going to have to take reforms one step at a time, to support smaller lenders."

He said that the Treasury is currently working on ways to ensure that reform measures would be amenable for all industry players and the sector would end up arriving at a workable agreement.

Such reform measures, Swan insisted, require more time for effective implementation as he stressed that reforms must be anchored too on stability while at the same fostering the idea of a healthy competition environment in the banking industry.

The federal government also endeavoured to enlist the participation of regulators on the formulated reforms as Swan stressed that he is ready to work with industry players to ensure that the banking reforms would be efficiently absorbed in the country's banking system in the smoothest way possible.

Swan firmly committed that definite reform measures should be out in a week's time, in which he "will outline a responsible package that will build on our efforts to support competition in the face of the worst global financial crisis in 75 years."

Again, the federal treasurer allowed that the government reform initiatives did not embrace all the provisions suggested during the heated banking debate but he assured that the measures would push for a banking system that upholds the interests of Australian banking clients whenever they transact for home or investment loans.