The rapidly rising credit risks are challenging China's banking industry as well as its economy in an unavoidable way. ANBOUND research team thinks that considering the pivot role of finance, the surging bad-loan ratio might trigger a series of market reactions, thus generating broader risks. China’s banking industry, being trapped in a contradiction between growth stabilization and risk prevention, shall continue to face remarkably increasing pressure in the coming years. Since risks befall more quickly than imagination, the banking industry needs to speed up its reform and transformation.