China looking at reform of banks

Premier Wen Jiabao, China’s top economic official, said its state-owned banks are monopolies that must be broken up, acknowledging mounting economic and political pressure to reform an industry whose vast profits are fuelling public anger.

Mr Wen’s comments suggest Beijing sees a growing political danger from its failure to carry out long-promised reforms of state banks, which pay minimal interest on deposits and made tens of billions of dollars in profit last year.