Rejecting "price wars", banks turn to structural reforms for more growth.

Recently, avoiding "inwardly spiraling" competition has become a topic of continuous concern in the banking industry. On one hand, the China Banking and Insurance Regulatory Commission has explicitly mentioned the need to prevent and correct "inwardly spiraling" competition in agricultural credit businesses. On the other hand, several banks have also voiced their refusal to engage in "price wars", urging to avoid inefficient competition. Journalists have learned from conversations with industry insiders that the most prominent manifestation of inward spiraling in commercial banks is in deposit and loan businesses. The root of this issue lies in the impact of external economic environment changes on the liabilities and assets of banks, as well as the inadequate market response capabilities of some commercial banks who still hold onto a "scale mentality" and lack innovative drive. While regulatory efforts are being made to correct inward spiraling and banks are speaking out against price wars, many commercial banks have already taken proactive actions. Based on their own resources, they are increasing their innovation efforts, adjusting their business structures, and actively exploring the path of differentiated development. This is mainly manifested in the active use of financial technology and other means to expand incremental deposit and loan businesses, increase the proportion of non-interest revenue, and continuously enhance their ability to navigate through economic cycles.