Core Viewpoint - The article highlights the evolution and impact of private banks in China over the past decade, emphasizing their role in providing financial services to the private economy and small enterprises through innovative and technology-driven approaches [1][5][9]. Group 1: Development of Private Banks - Since the establishment of the first private banks in 2015, the number has grown to 19, with total assets exceeding 2 trillion yuan, reflecting a year-on-year growth rate of over 9%, significantly outpacing the average growth of the banking sector [5][9]. - Private banks have successfully filled the financing gap for small and micro enterprises, which traditional banks often overlook due to a lack of collateral and credit history [3][7]. Group 2: Innovative Financial Services - Private banks utilize technology to offer differentiated financial services, such as warehouse receipt pledge loans, which allow businesses to leverage their inventory as collateral for loans [2][7]. - The balance of inclusive small and micro loans from 11 private banks reached 520.57 billion yuan by the end of 2024, with a significant portion of these loans directed towards private enterprises [3][5]. Group 3: Challenges and Future Directions - Despite their growth, private banks face challenges such as weak capital strength, reliance on interbank funding, and low brand recognition [9][10]. - Experts suggest that policy support is crucial for private banks to enhance their service capabilities and expand their operational reach, including lifting restrictions on single shareholder ownership and allowing more branch establishments [9][10].