Analysis and Recommendations on Status of Banking Profits
In recent years there has been profiteering phenomenon in the banking, the banking profits have far exceeded the profits of industrial enterprises, the per capita net profit of Chinese mainland banks is more 11 times than industrial enterprises, the interest rate between deposit and credit is large, trust, wealth management business and a number of service charges are main reasons of their huge profits. Such huge profits of banking sector are not good for economy, small and medium enterprise, mortgages and depositors, it has increased unfairness of income distribution, and the government should take measures to regulate this profiteering phenomenon. For example, the government could increase deposit rates, strengthen the tax regulation of banking sector, improve the tax rates in the banking sector, vigorously develop the micro-finance institutions and progressively carry out interest rate market.
KeywordsBanking profits Profiteering phenomenon Reasons Recommendations
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