Beijing restricts bank fees

China’s banking regulator issued new rules Friday to clamp down on excessive bank fees that have risen steadily in the past few years despite little improvement in customer service, The Wall Street Journal reported. The China Banking Regulatory Commission will now require all fees to be set by banks’ head offices rather than local branches and banks to give three months’ notice before raising fees. Income from services such as for changing internet passwords and withdrawing money in other cities has made up an increasing proportion of bank revenue in the last few years, in some cases more than 50% of operating income for China’s largest banks. Chinese banks have posted record-beating profits in recent quarters, yet their customer service lags far behind that of other countries. “China’s front-line banking service is still one step behind the rest of the Asia-Pacific,” said Kenny Lam, a partner with McKinsey & Co in Hong Kong.