Social responsibility of banks
Updated: 2012-03-07 08:06
Comment on "Chinese banks' profit model unsustainable", (Feb 22, China Daily website)
I'm afraid we have not learned from the financial meltdown. Banks in the West have become extreme capitalists in the sense that they are extremely profit motivated and have little social responsibility. As a result they created excess financial liquidity and fraud, which gradually led to the financial crisis.
Banks are business corporations, but in China they should have a different role. China should make more efforts to change the role of banks. We need a healthy financial structure as well as a healthy economy. Thus there is no reason why we should boost the profits banks make year after year if they have done little to benefit the economy as a whole.
After all, in China, the top goal of State enterprises should not be profits, but to serve the economy well and benefit the nation and citizens.
Manman, on China Daily website
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(China Daily 03/07/2012 page10)