Given the circumstance of a slowed-down growth rate of public businesses and the ever expanding asset size, stock-holding banks are rushing to transform their main businesses to retail businesses one after another. ANBOUND research team thinks that there lie enormous challenges for the transformation of stock-holding banks. First, while retail and SME (small and medium enterprises) loans can generate a higher profit, their risks are also higher. Second, there appears no remarkable feature in the transformation of those stock-holding banks. Third, stock-holding banks are left far behind the state-owned major banks in terms of such aspects as network layout, talent reserve and capital size.