A Beijing-based law office filed an appeal to the municipal High
People's Court on February 13, accusing the country's two banking
watchdogs of non-performance on small business account charges
initiated by banks.
Beijing Times reported that the appeal was made a week
after Beijing's No.1 Intermediate People's Court's refused to hear
the case delivered by Hengfangyongyuan Law Office on the grounds
that it was out of its jurisdiction.
Last month the office sued the country's central bank, the
People's Bank of China, and China Banking Regulatory Commission
(CBRC) in an attempt to hold the administrations responsible for
failing to supervise the banks and regulate the irrational fee.
Prior to this case, the office also put China Merchants Bank on
trial, questioning the validity of the charge. When asked for a
statement, the People's Bank of China and CBRC declined to comment
on the case.
According to Wang Liangbin, the law firm was charged 50 yuan
(US$6.25) per month by China Merchants Bank from August to December
in 2006 because the balance in the account was less than 50,000
yuan (US$6,250).
Wang said according to the Law of Commercial Banks, the charge
should have been reviewed by the banking regulators and the
National Development and Reform Commission (NDRC) before taking
effect, and the price set by watchdogs rather than the bank itself.
However, the fee for the small business account did not appear to
go through these necessary steps.
China Merchants Bank refuted that the charge, which it began
collecting in July of last year, is part of the bank's efforts to
optimize resources, better adapting it to the market. It's not a
government-guided fee, so there is no need to hand it to higher
administrations for review.
The charge is not only for business clients, but also applies to
individual accounts that fail to meet a bottom line set by the
bank. The payment is deducted automatically by the bank's network,
the report explained. Customers who refuse to pay for the charge
may have their accounts closed.
Wang complained the 50,000-yuan limit is too high for most small
and medium-sized private enterprises. According to statistics from
All-China Federation of Industry and Commerce, there were 25.76
million self-employed households by the end of 2006 with an average
balance of only 25,300 yuan (US$3162.5).
China's major banks began to levy the small account fee in 2005
after China Construction Bank became the first domestic bank to
charge for low balances. Insiders say the charge is commonly
recognized in other parts of the world, but many residents believe
it goes against the interests of account holders.
(CRI February 17, 2007)