ICBC raises service fees, disputes sparked

The Industrial and Commercial Bank of China (ICBC, SH.601398; HK.01398) announced on July 17 that it would adjust personal banking service fees that involve 23 items via its website.

If an investor takes a personal cash withdrawal in other cities for instance, the fee used to be 1% of the sum withdrawn, with a minimum of 1 yuan (14.66 US cents) and a maximum of 50 yuan (US$7.32). After the realignment, the minimum and the maximum are both doubled, while the 1% proportion remains unchanged.

An ICBC headquarters official says the new regulation will be enacted at different times. Currently ICBC's branches in Shanghai, Shandong, and Zhejiang have applied the new procedures while those in Beijing have not.

Citic Securities banking analyst, She Minhua, explains raising the service fees is an international convention to ensure the banks' profits. Investors are complaining because they do not foresee the increased rates bringing increased services.