First, the operating performance of the banking industry has further declined. Affected by multiple factors such as insufficient effective demand, narrowing net interest margin and rising credit risk, it is expected that the number of banks whose main business income and net profit will decrease in 20 17 will further increase.

Second, the non-performing loan ratio continues to rise slightly, but the pressure will gradually decrease. In the third quarter of 20 16, there were some positive signals in the real economy, and from the operating situation of entity enterprises, the second half of 20 16 was obviously better than the first half. If the improvement of the operating conditions of entity enterprises can be sustained, it is expected that the overall operating environment of banks will be improved in 20 17 years.

Third, we need to pay close attention to financial market risks. Due to the lack of credit demand, investment assets account for more than loans in the current asset allocation of banks, and in some small and medium-sized banks, investment assets even far exceed the credit scale. This means that the main risk faced by banks has changed from credit risk of loans to financial market risk.