Another one. Today’s Times
Another one. Today’s Times reports a speech by the Chinese prime minister, Wen Jiabao, calling for an end to the banking monopoly of the big Chinese state banks. Taking for granted that banks are essentially financial intermediaries between lenders and borrowers, the report says:
Quote:
The monopoly in question refers to the dominance of China’s four largest banks — hugely profitable, state-owned entities that include the Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China and get away with offering feeble interest rates on deposits. Three of China’s big four number among the top ten banks in the world. Because the Government sets deposit rates and minimum lending rates, the banks are guaranteed profit margins of 3.5 per cent.
This compares to a current “net interest margin” of 2.0 to 2.2 percent in UK banks.