Shadows of Doubt on Banking Profits
The onset of public scrutiny over bank profits only intensifies with each issuance of annual reports from China's commercial banks. A hard look at the figures shows why the criticisms of ill-gotten gains and monopolistic activities are fundamentally well-grounded.
China's interest rates are still entirely determined by the government and a huge chunk of banking profits flow from interest spreads. The weakening of credit controls only plays a small role in massive bank profits as this was a steady phenomenon since the start of market reforms.
- Sign up to receive our free daily newsletter
- How the Hammer Falls as China Nails Corruption
- CNPC Continues to Be Hit by Scandal as Two More Executives Fall
- Market Reforms, Fight against Corruption Go Hand in Hand, Expert Says
- Why Do Foreign Brands 'Break Bad' in China?
- Graphics: Zhou Yongkang's Tangled Path
- What Li Keqiang Asks in Meetings with Economists
- Central Committee Announces Inquiry into Ex-Security Boss Zhou Yongkang
- Alibaba Said to Delay New York Listing until after Labor Day
- Sheila Patel: Investors Should Be 'Positive' about China Stocks
- Graft Fight Will Take Years, U.S. Expert Says, but China Is Heading in Right Direction