China is planning to implement widespread reforms in its banking system in the near future, it has been announced.
Premier Wen Jiabao revealed yesterday (3 April) that he wants to oversee an overhaul of the country's financial sector in order to boost its wider economy, which has struggled to maintain strong growth in recent months.
There have been numerous calls from politicians and financial experts for the government to make changes to the system, which is widely seen as morally corrupt.
At present, China's state-owned banks are able to pay minimal interest on their deposits and consequently make billions of dollars in profit every year and anger towards this situation has grown as the country's economic expansion continues to slow down.
Therefore, Mr Jiabao - who took up his role in 2003 - has told China National Radio this arrangement needs to be altered sooner rather than later for the good of the nation's financial future.
"To allow private capital to flow into finance, basically, we need to break the monopoly," he noted.
By Claire Archer