Zheng Quan Shi Bao·2025-08-30 16:46Core Viewpoint - The banking industry is shifting towards a "de-involution" approach to combat irrational price competition, which is seen as detrimental to long-term growth and stability [1][2][4]. Group 1: Industry Perspectives - The 2024 Central Economic Work Conference and the 2025 Government Work Report emphasize the need to address "involutionary" competition in the banking sector [1]. - The Central Financial Committee's recent meeting highlighted the importance of regulating low-price, disorderly competition among enterprises [1]. - Bank executives, including Ping An Bank's president, have warned that prolonged unprofitable competition poses a significant risk to the industry [1]. Group 2: Impact on Banking Operations - The "de-involution" policy is expected to stabilize net interest margins in the banking sector, as indicated by multiple bank leaders [2]. - There has been a noticeable reduction in malicious competition in loan pricing over the past two months, which helps alleviate downward pressure on asset yields [2]. - Banks are encouraged to enhance their service capabilities and customer experience as competition shifts from price to meeting customer needs [2]. Group 3: Strategic Shifts - Banks like Huaxia Bank and Zhejiang Commercial Bank are focusing on transitioning from price-based competition to differentiated, comprehensive services [4]. - The emphasis is on providing value-driven services centered around customer needs, rather than engaging in price wars [4]. - The industry consensus on "de-involution" is becoming a practical action rather than just a slogan, as discussed in recent earnings presentations [3].