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.