Australia's major banks have pledged to do a better job in helping customers deal with mortgage stress from interest rate hikes and the rising cost of living.

The Australian Banking Association - which represents the big banks - says "there's always room for improvement".

That's after the corporate regulator ASIC found many borrowers who sought assistance dropped out in frustration at the hardship process.

The Association's chief executive Anna Bligh is speaking with the ABC's senior business correspondent Peter Ryan.