Following the outbreak of a global financial crisis in 2008, the world has regained a new understanding on the importance of strengthening banking supervision and risk prevention.

However, in reality, no material change has taken place.

ANBOUND Consulting warns that in general, the banking sector in China lacks the awareness of the importance of risk prevention.

Not only that the banks lack the awareness of financial risks, they are overly rely on the role of the central bank's role as the lender of last resort, this has not only constituted a significant potential risk, it is also an important reason as to why the banking sector is caught in a dilemma.

China should tackle this issue systematically by building a new regulatory framework as well as improving on its ability to repay the debts.