Executive Summary
Part Ⅰ Macroeconomic Conditions
Ⅰ. Concerns over economic trends and operation status of business enterprises
Ⅱ. Tight monetary policy increases operational pressure on banks
Ⅲ. Slightly lower evaluation of economic policy effect
Ⅳ. Weakening of the real estate market and stabilization of investments
in real estate developments
Ⅴ. Increasing concerns over residents'consumption concept and consciousness for financial management
Ⅵ. Increasing concerns over continual improvement of financial ecological environment and local public service levels
Part Ⅱ Development Strategies
Ⅰ.Attain strategic transformation of banks by developing new businesses and reducing capital consumption
Ⅱ. The next 3～5 years would be the optimal time frame for advancing interest rate liberalization.
Ⅲ. Further overseas expansion oflarge-sized commercial banks and strong desire of city commercial banks for cross-regional operation
Ⅳ. Optimism in cross-border RMB trade settlement business,but various restrictive factors need to be'resolved
Part Ⅲ Business Development
Ⅰ.Increasing difficulty in liability management and increased interbank competition to attract deposits are major challenges for Chinese banks
Ⅱ. SME Lending and Financial Advisory became top priorities in banking services provided to corporate customers
Ⅲ. Focus on industry sectors: advanced manufacturing industry,modern service industry, energy-efficiency and environmental protection industry
Ⅳ. A prudent attitude towards real estate development loans and in support of more policies for construction of affordable housing
Ⅴ. Increasing importance of wealth management and private banking in personal financial business
Ⅵ. Varying priorities in developing their channels
Part Ⅳ Risk Management and Internal Control
Ⅰ.Concerns of bankers over asset quality have notably increased,with real estate and LGFV loans being the most significant
Ⅱ. Risk management capabilities need further improvement as a whole and operational risk management is considered a priority by most banks
Ⅲ. Systemic financial risk is less likely, but the regional risk of East China is a cause for concern
Ⅳ. Internal control building is sustainably advanced and total coverage and compatibility becomes the keynote
Part Ⅴ Corporate Governance
Ⅰ.Enhancement ofinternal controls, risk management and effective incentives are the most important factors for corporate governance
Ⅱ. Improving satisfaction of headquarters and branches'managerial architecture
Ⅲ. Performance assessment of directors and supervisors mainly integrates self-evaluation and mutual evaluation
Part Ⅵ Process Reengineering
Ⅰ.Centralisation of back office processes is the priority for the process reengineering of commercial banks
Ⅱ. Lack of effective examination mechanism is the biggest barrier for banks'process reengineering
Ⅲ. Organizational restructure lays the foundation for process-oriented banking
Part Ⅶ IT Governance and IT Construction
Ⅰ.Investments in IT have increased and network, mobile internet and other new technologies are of concerns
Ⅱ. Backward construction ofIT talent force becomes the main restrictive factor for IT governance of banks
Ⅲ. Risks due to development and application of new technologies draw most concerns from bankers
Ⅳ. Supporting "customer-centric" business process reengineering becomes the strategic priority of banks for IT construction
Part Ⅷ Human Resources
Ⅰ.Over the next three years, the number of employees is expected to rebound and small and medium commercial banks will show a strong demand for employees
Ⅱ.Branches are concerned with building of talent pool and head offices are more concerned with compensation structure
……
Part Ⅸ Supervision and Evaluation
Part Ⅹ The Bankers
Part Ⅺ Development Prospects
Appendix
Interview Notes
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