The State Administration of Financial Supervision and Administration recently released data on the main regulatory indicators of the banking industry in the second quarter of this year, showing that at the end of the second quarter of this year, the total domestic and foreign currency assets of China's banking and financial institutions were 46.73 trillion yuan, a year-on-year increase of 7.9%. Dong Ximiao, Chief Researcher of Zhaopin and Deputy Director of Shanghai Finance and Development Laboratory, believes that in the second quarter, China's banking industry continued to maintain a steady development trend, with stable growth in scale, improvement in asset quality, strong risk offsetting ability, and continuous improvement in serving the real economy and stable development ability. Lou Feipeng, a researcher at China Postal Savings Bank, stated that the sustained growth of banking assets is a result of China's economic recovery and increased demand for financial services. The banking industry has increased credit allocation around key areas of economic and social development, maintaining a high growth rate of loans, thereby promoting the growth of its asset size. Specifically, the total domestic and foreign currency assets of large commercial banks amounted to 20.42 trillion yuan, a year-on-year increase of 10.4%, accounting for 43.7%; The total amount of domestic and foreign currency assets of joint-stock commercial banks was 75.7 trillion yuan, a year-on-year increase of 5%, accounting for 16.2%. Dong Ximiao believes that the market share of large commercial banks has significantly increased, market concentration has increased, and the roles of "main force" and "ballast stone" have further emerged. From the perspective of credit asset quality, the asset quality of commercial banks is accelerating improvement. At the end of the second quarter of this year, the balance of non-performing loans in commercial banks was 3.4 trillion yuan, a decrease of 2.4 billion yuan from the end of the previous quarter; The non-performing loan ratio of commercial banks was 1.49%, a decrease of 0.02 percentage points from the end of the previous quarter. At the same time, the risk offsetting ability of commercial banks has increased. As of the end of the second quarter of this year, the balance of loan loss provisions for commercial banks was 7.3 trillion yuan, an increase of 126.9 billion yuan from the end of the previous quarter; The provision coverage ratio was 211.97%, an increase of 3.84 percentage points from the end of the previous quarter. Dong Ximiao believes that the double decrease in non-performing loans compared to the previous period is mainly due to the accelerated disposal of non-performing assets by commercial banks and the "dilution" effect generated by the accelerated loan disbursement speed. The pressure of subsequent asset quality rebound is still significant, especially in areas such as inclusive small and micro enterprises, real estate, where credit risks and non credit asset risks have not been completely eliminated. Accelerating the disposal of existing risks and increasing the prevention of new risks is a long and arduous task. At the same time, it should be noted that the survival space of joint-stock banks and small and medium-sized banks is being squeezed, and their market share continues to decline. Dong Ximiao stated that for the banking industry, it is necessary to further strengthen self-discipline, abandon the "scale mentality" and "speed mentality", and prevent "internal competition" and vicious competition. More importantly, small and medium-sized banks should adopt differentiated competitive strategies, return to their roots, leverage their strengths and avoid weaknesses, and truly embark on the path of "small and beautiful" and "small and refined" development. Lou Feipeng stated that in the future, it is necessary to strengthen structural monetary policy tools in financial policy and guide the increase of credit support for key areas and weak links. Banks need to accelerate the innovation of financial products and services, and improve the efficiency of supporting the real economy. (New Society)