Prime Minister urged China to “destroy” the monopoly of the banks

Wen said that the country’s leading banks are “too easy” to generate profits.

Prime Minister Wen Jiabao urged to “destroy” the monopoly of the four leading banks in China. He added that the profit goes to the banks too easy.

“With regard to financial cost, let me be frank: our banks get profit too easy. Why is this happening? Because some of the largest banks have established a monopoly,” said the prime minister of China.

Prime Minister Wen Jiabao said China needs to allow small private firms access to loans, since the global economy is slowing down.

China’s banks lend mostly to state-owned enterprises, which leads to private entrepreneurs frequent borrowing money from informal lenders at high interest rates.

Last year, a Wenzhou urban district with a population of about 8 million people faced a debt crisis, when nearly 100 business owners fled from creditors because of inability to pay debts.