China’s banks cut salaries, rescind bonuses amid economic slowdown and Beijing’s financial reshuffle
- China’s 12 national joint-stock banks reported deep salary cuts last year, with Bohai Bank reporting the largest pay cut of 11.8 per cent
- 10 state-controlled financial institutions demanded employees return performance-based bonuses worth a combined 99.88 million yuan (US$13.8 million) in 2023
China’s most vibrant banks reported the largest salary cuts among financial institutions last year, adding to ongoing employment pressures, while 10 state-controlled lenders also demanded employees return bonuses amid Beijing’s efforts to reshape the industry, according to data gathered from annual reports.
The large pay cuts came as the 12 national joint-stock banks – lenders that are owned and controlled by shareholders – are increasingly haunted by the debt woes in the property market and at local government financing vehicles.
And while such moves by the group’s members, which have assets only smaller than the big six state-owned banks, partly reflects China’s overall economic slowdown, more pay cuts are expected.
Bohai Bank, which is based in the debt-ridden northern municipality of Tianjin, reported the largest pay cut of 11.8 per cent to an average annual salary of 438,000 yuan (US$60,621) per employee.
It was followed by an 8.5 per cent cut by Ping An Bank and 6 per cent cuts from China Merchants Bank and China Citic Bank.