subject: Huge Profits Of Banking Industry Stirred Wide Questioning [print this page] Based on a study within the Legal Daily, attorney at law about huge profits of banking industry has upgraded again in recent days. It's revealed that within seven years, the amount of kinds of charging costs has elevated by ten occasions. It's thought that it's the mixture of getting difference in deposit and loan rates of interest and adding new kinds of handling costs which help banks to obtain huge profits in China.
"Profits within the banking sector, additionally to difference in deposit and loan rates of interest, numerous costs will also be important sources, " stated Liu Junhai, Deputy Chairman from the China Consumer Association along with a professor of Law School of Renmin College of China.
In August of 2011, twelve listed banks introduced the outcomes from the first 1 / 2 of 2011, having a total internet profit of 424.447 billion Yuan, among which internet revenue of costs and commissions was 205.743 billion Yuan, comprising nearly half from the internet profit.
Based on a study titled The Analysis of Improper banking Card Costs, the writer, Meng Qinguo, a professor in Wuhan College, stated that charges of banking industry are as much as 3,000, and within seven years, the amount has elevated by ten occasions.
Why can the banking industries profit considerably? The deep reason would be that the monopoly has stirred profits. Since the financial reform has not arrived at the entire extent of competition, customers and banking institutions aren't equal, which leads to the inadequate market competition. Similarly, banks possess the absolute to cost on one side, customers struggle difficult to safeguard their privileges and interests. At the moment, some associates generally think that the present surge in banking profits continues to be produced from monopoly, and also the technical content of monetary sense is weak. At the moment four greatest banks take too big share of the market. The development of banking profits originates from its monopoly position. It had been since the financial reform does reach the full extent of competition. More measures for encouraging a reasonable competition ought to be brought. Besides, a lot of products of charging costs result in the customers feel they have been conned freely and will also harm their feeling of justness.
