Certain Retail Banking Charges to be Abandoned in China

2011-03-14

According to the central bank, certain retail banking fees applying to actions, such as opening and closing accounts and password resets, will be abandoned. Such a move will appeal to consumers and will do little to effect bank profits.

According to newly published rules on the central bank's website (www.pbc.gov.cn) to take effect on July 1, 2011, banks will also be forbidden to charge management fees for handling salary, pension, and housing funds.

The new rules, issued by both the China Banking Regulatory Commission and the National Development and Reform Commission, will "further perform their social responsibilities."

Though the fee restrictions will have a minimal impact on Chinese banks' profits, the new rules will help calm public discontent towards Chinese banks. Currently, a customer must pay CNY 10 (about USD 1.50) for resetting a password on a personal account.

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