1. Report Industry Investment Rating The provided content does not mention the industry investment rating. 2. Core Viewpoints of the Report - The overall risk of small and medium - sized banks has decreased, but there is still credit stratification. A multi - dimensional bank scoring system is established to support investment strategies such as credit sinking [3]. - Effectively identifying industry risk characteristics is the starting point for constructing the score, including high systemic importance, bearing certain policy - related functions, pro - cyclicality, being greatly affected by regional fundamentals, obvious influence of corporate governance, high leverage, and risk concealment [3]. - Through a top - down analysis paradigm, the industry risk center is confirmed, and then individual scoring sequences are studied. Business development, profitability, asset quality, capital level, and individual comprehensive indicators are analyzed [3]. - The scoring results are verified to be effective, and credit mining can be carried out accordingly. Banks are divided into different risk - preference groups, and low - risk and high - cost - performance banks are recommended [3]. 3. Summary According to Relevant Catalogs 3.1 Banking Credit Risk Characteristics - Banks are of high systemic importance. Different banks have different degrees of systemic importance, and a multi - level regulatory system controls industry risk levels, resulting in a higher credit quality center and lower bond - issuing yields compared to other industries [10]. - Banks bear certain policy - related functions. State - owned banks participate in risk disposal of other banks, and local city and rural commercial banks support local economic development and debt resolution [11]. - Banks are pro - cyclical. Their asset growth and credit levels are related to the economic cycle, and risk - disposal policies can hedge the pressure of non - performing assets [12]. - Banks are greatly affected by regional fundamentals. Local banks' asset quality is closely related to regional investment and financing, resource endowment, and hidden debts. National banks' risk differences come from customer levels and regional penetration [13]. - Corporate governance has an obvious impact. The background of bank shareholders affects credit quality. After industry rectification, the corporate governance risk has been effectively reduced, and private shareholders should be observed from a more comprehensive perspective [15]. - Banks have high leverage. A small amount of bad assets can cause capital adequacy pressure, and domestic bank risk events often manifest as the spill - over of non - performing assets [16]. - Bank risks are concealed. Banks may take measures to delay and whitewash risks before they are exposed, and the actual non - performing assets are often higher than the observable figures [16]. 3.2 Top - Down Credit Analysis 3.2.1 Business Development The growth trend and structure of the banking industry's assets contribute weakly to profit growth, but the low loan growth rate limits the pressure on capital consumption, and the industry's internal capital pressure maintains a tight balance [19]. 3.2.2 Profitability The net interest margin of commercial banks has been decreasing year by year, reaching 1.42% at the end of 2025. In 2026, the narrowing of the net interest margin may further slow down, which is conducive to banks' internal capital replenishment [26]. 3.2.3 Asset Quality The non - performing loan ratio of commercial banks has gradually decreased in the past five years, but the proportion of loss - type loans has increased, which may affect capital adequacy. Different types of banks have different asset - quality situations, and currently, the provision for non - performing loans is sufficient [32]. 3.2.4 Capital Level The capital adequacy ratio of commercial banks has generally shown a fluctuating upward trend in the past five years. Large - scale commercial banks have a high capital adequacy ratio, and the overall credit risk of the industry is not high [41]. 3.2.5 Bank Individual Comprehensive Credit Analysis Framework A multi - perspective evaluation index system is needed to identify individual - specific risks of banks, and the financial data, business logic, and operating environment should be mutually verified [43]. 3.3 Banking Credit Analysis Model and Scoring Results 3.3.1 Scoring Standards Core analysis indicators are selected, including asset quality, profitability, capital adequacy, liquidity, regional operating environment, corporate governance, and adjustment items. The scoring rules for each indicator are determined [49][51]. 3.3.2 System - Important Banks 21 domestic system - important banks are identified and divided into five groups. Their secondary - capital bonds and perpetual bonds have low 1 - year bond valuation yields, and only their key indicators are presented [60]. 3.3.3 Non - System - Important Banks The credit scores of the top 30 non - system - important banks in terms of secondary - capital bond and perpetual - bond stock balances are calculated. The Spearman correlation coefficients of secondary - capital bonds and perpetual bonds are - 0.70 and - 0.75 respectively, indicating that the scoring model has strong identification effectiveness. Low - risk and high - cost - performance banks are recommended [63][80][81]