破解“小而美”进阶难题

Core Viewpoint - The challenges faced by private banks in China stem from both common issues in the banking industry and unique difficulties specific to this group, leading to a need for a redefined functional positioning in the context of supply-side reform in the financial sector [1][2]. Group 1: Challenges Faced by Private Banks - Private banks initially aimed for a "small but beautiful" model, focusing on inclusive finance to address the shortcomings of traditional banks in serving small and micro enterprises and individuals [1]. - Over the past decade, while significant progress has been made in improving access to finance, the competitive landscape has shifted from a "blue ocean" to a "red ocean," with large banks intensifying competition in areas where private banks lack advantages in branch networks and funding costs [1]. Group 2: Need for Transformation - Amidst pressures such as narrowing net interest margins, slowing business growth, and asset quality challenges, many small and medium-sized banks, including private banks, urgently need to redefine their functional positioning [2]. - The transition towards high-quality economic development in China requires financial institutions to identify target customer groups and continuously deepen their engagement based on their resource endowments [2]. - The transformation process is expected to be complex and may coincide with a wave of mergers and acquisitions, reshaping the banking ecosystem [2]. Group 3: Regulatory Considerations - The future of private banks and other small and medium-sized banks will depend on their ability to transform and integrate, while the banking sector requires various ownership institutions to compete and grow together [2]. - Regulatory authorities need to implement differentiated supervision based on the characteristics and complexity of different types of banks, ensuring a level playing field while avoiding unnecessary administrative burdens [2].