By Wang Gang, Research Institute of Finance, DRC

Research Report, No.304, 2020 (Total 6048) 2020-12-16

Abstract:The high-quality development of China’s banking sector in the 14th Five-Year Plan period is faced with numerous challenges: the downward trend of economic development will lead to the slowdown in the growth rate of banking sector’s assets volume; market-based interest rate reform will squeeze the profits of banking sector; the fast fin-tech development will exert a direct impact on small- and medium-sized banks induced by financial disintermediation; and the double-way opening-up will give rise to much more fierce competitions in banking sector. As a result, financial risks will haunt about in the years to come. To push ahead with the high-quality development of banking sector in the 14th Five-Year Plan period, work needs to be done in the following aspects. One, special attention needs to be paid to major fields and weak links so as to promote the quality and effectiveness of banking sector in serving the development of real economy; Two, efforts need to focus on the improvement of institutional layout and major business items so as to promote the structural optimization of banking system; Three, we need to enhance the green financial growth by meeting the requirements of green development; Four, continuous efforts are needed to push ahead with data-based transformation; Five, corporate governance and motivation and restriction mechanism needs to be fleshed out; Six, a sustainable capital supplement mechanism needs to be established; Seven, supervisory mechanism and risk management mechanism for banking sector need to be consummated.

Keywords: banking sector, high-quality development, 14th Five-Year Plan (2021-2025)