At the beginning of 2018, the banking regulatory measures came into force one after another, setting the tone for the year's high-pressure regulations. The two major cases of Shanghai Pudong Development Bank and China Guangfa Bank shocked both regulators and decision-makers. However, what the Chinese domestic banking sector facing is systemic problem. Under the background of economic slowdown, excess capital, deteriorating real economy and a great reduction of good enterprises, excess capital continuously pursues assets. At the time of intensifying supervision, the fundamental problem the banking industry faces is development; if there is no development, one will not be able to discuss other issues.