The degree of marketization in Chinese banking industry is rather low and the risk management was weak when the regulation of loan to deposit ratio played an active role. ANBOUND research team thinks that the current marketization in Chinese banking industry is growing and most of commercial banks are able to cautiously handle business development and risk management issues. The loan to deposit ratio evaluation has become a limitation to the banking industry and should be abolished as soon as possible. The regulatory of banking industry just needs to follow the New Basel Capital Accord and ensures several key indicators such as venture capital is under controlled.