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China's Banking Regulator Says Internet Fees Are Driving up Financing Costs


China’s Banking Regulator Says Internet Fees Are Driving up Financing Costs
What’s new: China’s top banking regulator warned against higher financing costs caused by high fees for referral traffic charged to banks by big internet platforms.
Some big internet platforms charge banks a referral traffic fee or information service fee as high as 6-7%, while banks’ actual loan interest rate is only 4-5%, Guo Wuping, director of the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission (CBIRC), said at a regular policy briefing of the State Council Thursday.
Guo said that reducing fees for businesses didn t just involve banks but also other market players including big internet platforms profiting from referral traffic. He said the regulator will step up regulatory efforts to curb big internet platforms’ fees. ....

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