With the slowdown of the Chinese economy and the excess capital, commercial banks are experiencing worsening development environment. Resolving risks, optimizing allocation of assets, searching for profit areas are becoming common issues for the banks, though the reality is less than optimistic. Anbound Think Tank's research team believes that as the real estate sector accumulates higher risks, the increasingly tighter control of the property market by the central authorities, as well as clearer neutral-tight currency policy, it is expected that the banks will increase more non-interest income and control cost, in addition to low-risk capital configuration and more proactive in debt-equity swap. However, under the restriction of multiple factors, the banks’ debt-equity swap does not look overly optimistic.