The China Banking Association (CBA) and PriceWaterhouseCooper (PwC) have just released the 11th “China Banker Survey Report (2019)” (中国银行家调查报告(2019)).
The Report found that Chinese banks expect China’s economy to continue to enjoy steady growth in future, with 63.2% pointing to shifts in Sino-US relations as the biggest risk factor.
57.1% of respondents said that IT risks and information security issues brought by fintech have become their biggest risk concern, while 59.4% said that regulatory capability still needed to better match fintech development, and 43.1% said that fintech regulation needed to become more targeted.
Over 64.7% of respondents said that they were pursing specialised operations as their main strategy, in the wake of efforts to reform China’s interest rate system and associated challenges posed to the operating and earnings models of traditional banks.
Around 70% of survey respondents said they expected growth in operating revenues of less than 10% over the next three years, while approximately 40% of respondents anticipated growth in after-tax profits of between 0 – 5%.
Around 60% of respondents expect non-performing loan ratios to remain between 0.5 – 2.0% over the next three years.
The Report also said that commercial banks have responded rapidly to the outbreak of the novel coronavirus, and are actively undertaking efforts to prevent and control the impacts of the disease.