Country: China
Institution: Multiple Chinese Banks, including Bank of China, China Guangfa Bank, and Anhui Lujiang Rural Commercial Bank.
Event Details: Chinese banks are reversing a trend of fee reductions by increasing service charges to offset declining net interest margins. This includes fees for credit certification, ATM withdrawals, and cross-border wealth management services.
The move comes as net interest margins hit historic lows, with the average for commercial banks falling to 1.43% in Q1 2025. This is a decrease of 9 basis points from the previous quarter.
The fee hikes are intended to boost revenue, as banks face pressure from shrinking net interest margins and a rise in non-performing loans. Major banks are also planning private placements to support lending.