The Government should bail out investors in failed construction insurer CBL Corporation and commission a full inquiry into its collapse, says its former chief executive Peter Harris.

Harris' call comes a week after an independent report on the Reserve Bank found the regulator was too lenient on CBL and should have acted more decisively about its solvency concerns.

The Reserve Bank has accepted it should have acted more forcefully and at an earlier stage but says ultimately the failure wasn't the Reserve Bank's fault, it was CBL's failure.

CBL was put into administration in 2018 after its subsidiary CBL Insurance