This report is the 16th annual survey that KPMG has published for China's banking industry. In this summary edition, we describe how the pace of asset expansion in the country’s banking sector slowed in 2021 despite adjustments to macroeconomic policies; and we also analyse the five major forces that will drive the development of commercial banks for the foreseeable future amid the growing complexity both within and outside China: stronger credit support, better services for the real economy, higher financial stability, better protection of financial consumers’ rights, and the comprehensive digital transformation of banks. In part two of the report, professionals with extensive experience in banking strategic planning analyse and provide insights into important topic of six transformational recommendations for China’s banking industry in 2022. Finally, in part three of the report, our professional team delves into the performance and key indicators of 200 listed and non-listed commercial banks in 2021, covering their scale of business, profitability, asset quality and capital adequacy.

Overall, we hope to use our experience to provide professional insights and relevant cases that are widely applicable to the commercial banking industry. The future is here, and we look forward to serving as a steadfast partner to banks as they navigate changing trends and make new achievements.