Core Viewpoint - The banking industry is undergoing a "de-involution" movement, with various regional banking associations implementing self-regulatory agreements to curb "involution-style" competition, which has led to irrational practices like commission payments to real estate companies and intermediaries [3][5][12]. Summary by Sections Involution in Banking - "Involution-style" competition refers to low-level homogenized competition in the banking sector, characterized by blind expansion, price wars, and excessive marketing [6][8]. - Practices such as "commission grabbing" and "dark box operations" have emerged, where banks pay commissions to intermediaries or developers to attract customers, often bypassing regulatory scrutiny [6][10]. Causes of Involution - The prolonged "involution" phenomenon is attributed to multiple factors, including a significant decline in net interest margins, leading banks to resort to price competition due to severe service homogenization [9][10]. - Performance evaluation mechanisms in some banks focus on business scale and growth rates, pushing employees to adopt low-price and high-commission strategies to attract clients [10][11]. Risks and Consequences - "Involution-style" competition distorts market dynamics, leading to adverse effects such as "bad money driving out good" and resource misallocation, ultimately suppressing economic vitality [9][11]. - High commission payments can trigger vicious competition, increasing operational costs for banks and ultimately being passed on to consumers, which can harm both parties involved [10][11]. Moving Towards Value Creation - To address the "involution" issue, experts suggest establishing a three-dimensional governance framework that includes regulatory guidance, industry collaboration, and institutional transformation, shifting the competitive logic from "scale competition" to "value creation" [12][14]. - The transition will likely involve short-term pain, with banks relying on price wars facing customer attrition and potential performance declines, but it is expected to reshape a healthier banking ecosystem in the long run [12][14].