At the end of last month, many listed banks have announced their 2016 annual reports; the four major banks of China, namely the Industrial and Commercial Bank of China, the Bank of China, China Construction Bank and the Agricultural Bank of China enjoy stable profits. Some analysts in China believe that this may mean that the tough subprime mortgage crisis of the banking industry is over. However, Anbound research team believes that that the prospect for the future of China's banking industry is not optimistic. On the one hand, the country's economic growth rate is steadily declining, and the leverage rate is still high, the long-term contradiction of the banking sector development is yet to be resolved. On the other hand, with the development of Internet finance, the share of financial resources left to the banking industry will gradually shrink. Although many of the credit demand is not market-oriented, relying on the government’s policy and subsidies for long-term, only to make moral risk in the financial market to be even more serious. The banking industry is still need to be ready for the tough days.