Mei Ri Jing Ji Xin Wen·2025-07-31 14:22Core Viewpoint - The Industrial and Commercial Bank of China (ICBC) has publicly committed to addressing "involution" in the banking sector, which has sparked significant reactions within the industry [2][5]. Group 1: ICBC's Meeting and Policy Statements - ICBC held a mid-year operational management meeting emphasizing the need to implement economic policies and prevent risks in key areas while addressing "involution" in competition [1]. - The bank's leadership has called for a focus on aligning products with customer needs and stabilizing the operational foundation of the bank [1]. Group 2: Industry Reactions and Initiatives - The call to combat "involution" has resonated across the banking industry, with other banks also taking steps to mitigate harmful competition practices [4][5]. - A recent meeting organized by the Ningbo Banking Association involved 57 banks agreeing to prevent "involution" and establish self-regulatory guidelines for personal housing loan practices [5]. Group 3: Regulatory Context and Historical Background - The issue of "involution" in the banking sector has been recognized for some time, with ICBC's president previously advocating for self-regulation and fair market practices in January [6]. - The People's Bank of China highlighted the negative impact of intense competition on interest rates in its monetary policy report, indicating a significant deviation between loan rates and policy rates from August 2019 to August 2024 [7][8].