A decision by Beijing banks to allow customers with registered accounts to deposit and withdraw money from other banks has proven to be very controversial.
Officials with a local consumer watchdog have expressed concern that excessive charges on inter-banking services threaten free competition, the Beijing News, a local media outlet, reported Saturday.
Breaking down barriers between banks and making inter-bank transfers more convenient for customers won widespread acclaim shortly after it started at 14 banks in Beijing. However, the service fees charged on transactions gradually became a source of rancor for many.
Zhang Ming, an official with Beijing's consumer association, said new banking services intended to facilitate transactions have run into problems because of complicated procedures and excessive service fees.
He noted that high standard fees have infringed upon consumers' legal rights to fair trade, and many customers would rather exclusively use the banks where they opened their accounts.
Most banks offering this new service have set the service fee at the same level -- the China Construction Bank, Bank of China and China Industrial Bank all charge a fee of one percent of the total transaction amount.
"If banks reached an agreement on a unified standard charge, they would be suspected of restricting competition and forming pricing unions, which is similar with the instant noodle association and milk associations that joined forces in raising their prices," Zhang said.
The consumer association would take further action to investigate the issue, he added.
This move has also drawn the attention of some legal experts. Dong Zhengwei, an attorney at the Tang Law Group, is one of those who do not support the charge. He called for a public hearing on the service fee or even imposing a halt on it.
Zhang said he would send a proposal about protecting people's property to the National Development and Reform Commission and the China Banking Regulatory Commission next Monday.
In response to public criticism, sources with the China People's Bank said they would help offer a platform for commercial banking to facilitate banking services. Commercial banks would join the effort on a voluntary basis and set rates on their own.
The Central Bank has not set a standard fee for inter-bank transactions, nor does it have the responsibility to do so.
(CRI November 25, 2007)
