Chinese PM: Banking Monopoly Must Be Broken

Prime Minister of the People's Republic of China, Wen Jiabao, told Chinese state radio that the state monopoly on banking must be broken, TheMarker reported. Jaibao stated that the power wielded by the four state-owned banks is too great.

The Chinese banks earn money too easily due to the monopoly they have on the banking sector, Jiabao said. This monopoly harms the business interests of the country, he stated, because it does not give local companies enough options to secure funding.

Jilbao's comments follow a lively media debate in China over the role of the country's banks, according to TheMarker. Resentment of the banks is resulting from the low interest rates they pay, and bitterness has increased as reports emerged of the banks' profits amidst nation-wide stagnation.

Although the Chinese economy, the world's second-largest, has taken off at breakneck speed in the last decade, it is expected to slow down in the years to come.

http://www.reuters.com/article/2012/04/03/us-china-banks-idUSBRE83211C20120403