Core Viewpoint - The current banking system in China requires improvement, with unreasonable competition among large, medium, and small banks, leading to challenges for small banks in serving quality small and medium enterprises [1][2]. Group 1: Reform and Development of Small Banks - The key to deepening the reform of small banks lies in establishing a collaborative ecosystem for the development of large, medium, and small banks, allowing different types of banks to meet the financing needs of various enterprises [1][2]. - Small banks must adhere to their positioning by serving communities and local areas, as many have faced risks and issues due to weak risk control, historical burdens, and detachment from their communities [2][3]. Group 2: Policy Support and Financial Services - There is a need for differentiated policy support for rural financial institutions like rural credit cooperatives and village banks to enhance their internal governance, operational capabilities, and risk resistance [1][3]. - Encouragement for the development of private banks is essential, with improvements in operating conditions and policy environments, allowing for the opening of more branches and a focus on community service [3]. Group 3: Financial Structure and Market Adaptation - The financial structure should be changed to better serve small enterprises, moving away from the current model where large banks serve small businesses, thereby enhancing the stability of the financial system [2]. - Private banks are encouraged to explore innovative operating models such as "large deposits and small loans" and "small deposits and small loans" to better match the financial needs of niche markets [3].