Banking regulator investigates excessively high bank fees

The China Banking and Regulatory Commission has launched an investigation into the fee-based business of banks, The Wall Street Journal reported. The CBRC said in a statement published on its website that it had started an investigation on April 1, and warned banks that they would be “severely punished” if found to be charging clients high fees on routine services. While the statement did not elaborate on what consistutes excessive fees or what the punishment might be, the investigation may be part of a broader push by the government to calm public anger over what are viewed as excessive profits at the country’s state-owned banks. Chinese Premier Wen Jiabao said last week that the state bank monopoly should be dismantled, following recent months of mounting public ire over bank fees for seemingly minor services, such as changing internet passwords.