(China Daily)
Updated: 2007-12-06 10:52

That State-owned banks have become the most profitable enterprises offers food for thought, says an editorial in Guangzhou Daily. The following is an excerpt:

The Industrial and Commercial Bank of China (ICBC), the country's largest commercial bank, replaced Sinopec as the most profitable listed company of China last year with a total revenue of 103.7 billion yuan ($14 billion). Bank of China (BOC) was second with 78.6 billion yuan ($10.62 billion). The top 100 most profitable listed companies were mainly in the financial, steel, power, transportation and coal industries.

Banks, of course, can and should make profits. But the "big four" listed commercial banks in China, including ICBC and BOC, are State-owned banks, which means these banks should shoulder their social responsibilities while making profits.

These State-owned commercial banks should not only aim at maximizing their profits.

These banks have become the most profitable companies, but to the displeasure of the public, as they have not shouldered their social responsibilities.

Their monopoly certainly contributes to their huge profits, but their profits are at the expense of clients' interests. For example, the "big four" have colluded in their charge of fees.

To seek maximum profits, some State-owned banks have issued huge loans to industries with high safety problems. This is also a reason for our overheated economy.

While making profits, these State-owned commercial banks should also shoulder their social responsibilities by providing quality services and protecting the interests of clients.

State-owned banks would be more appreciated if they focus less on profits and more on better services.