The bill prepared by Pat Rabbitte would give an Oireachtas Committee the 'legal authority' to hold such an inquiry.
However, under this Bill such an investigation could not make findings of civil or criminal liability against a person.
Pat Rabbitte said that unless such an inquiry takes place soon it is unlikely to happen in the lifetime of this Dáil.
Labour Finance Spokesperson Joan Burton said such an investigation would concentrate on the key players that contributed to the crisis.
The party's leader Eamon Gilmore said people had a right to know why the banking system failed so spectacularly.
The party will call for the inquiry when the Dáil meets next week.
Elsewhere, Minister for Finance Brian Lenihan is to bring proposals to next week's Cabinet meeting to address the need to learn lessons from the banking collapse.
The Government will then spell out in the Dáil what it feels is the appropriate route to follow
Last month, Green Party leader John Gormley backed calls for an inquiry.
