Tearing mode stability is normally analysed using MHD or two-fluid Braginskii plasma models. However for present, or future, large hot tokamaks like JET or ITER the collisionality is such as to place them in the banana regime. Here we develop a linear stability theory for the resonant layer physics appropriate to such a regime. The outcome is a set of ‘fluid’ equations whose coefficients encapsulate all neoclassical physics: the neoclassical Ohm's law, enhanced ion inertia, cross-field transport of particles, heat and momentum all play a role. While earlier treatments have also addressed this type of neoclassical physics we differ in incorporating the more physically relevant ‘semi-collisional fluid’ regime previously considered in cylindrical geometry; semi-collisional effects tend to screen the resonant surface from the perturbed magnetic field, preventing reconnection. Furthermore we also include thermal physics, which may modify the results. While this electron description is of wide relevance and validity, the fluid treatment of the ions requires the ion banana orbit width to be less than the semi-collisional electron layer. This limits the application of the present theory to low magnetic shear—however, this is highly relevant to the sawtooth instability—or to colder ions. The outcome of the calculation is a set of one-dimensional radial differential equations of rather high order. However, various simplifications that reduce the computational task of solving these are discussed. In the collisional regime, when the set reduces to a single second-order differential equation, the theory extends previous work by Hahm et al (1988 Phys. Fluids 31 3709) to include diamagnetic-type effects arising from plasma gradients, both in Ohm's law and the ion inertia term of the vorticity equation. The more relevant semi-collisional regime pertaining to JET or ITER, is described by a pair of second-order differential equations, extending the cylindrical equations of Drake et al (1983 Phys. Fluids 26 2509) to toroidal geometry.