The Australian share market has closed higher, with the big banks well up on the back of the Financial System Inquiry’s call for them to hold more capital.

At the close on Monday, the benchmark S&P/ASX200 index was 37.4 points, or 0.70 per cent, higher at 5,372.7, while the broader All Ordinaries index was up 35.3 points, or 0.66 per cent, at 5,348.9, according to preliminary figures.

On the ASX 24, the December share price index futures contract was 55 points higher at 5,387, with 26,927 contracts traded.