The China Banking Regulatory Commission has issued new rules to prevent Chinese banks from charging their customers excessive fees, media outlet Wall Street Journal has unveiled.

The newly released regulations state that all fees must be established by banks' head offices and not local branches and that banks must be transparent when setting prices. In addition, they must give three months’ notice before raising fees.

In China, customers have been forced to deal with bank fees, unlike overseas bank account holders. Chinese customers of a bank located in a certain city will be charged a fee when using the bank`s ATMs in a different city.

Furthermore, over the past years, fees have become a reason of frustration and customers have complained about being charged for various services, ranging from transferring funds to changing their internet banking password, the same source reports.

According to a survey released by consulting firm McKinsey in 2011, the Chinese level of loyalty for their bank has decreased significantly over the last five years. The same source mentions that key factors which drive loyalty in China towards banks include employees’ familiarity with bank procedures, courtesy and whether staff makes mistakes when dealing with accounts.

China's banking regulator has also encouraged banks to diversify their business and provide new services to clients.