Recently, China Banking Regulatory Commission (CBRC) once again approved private banks, which has attracted a lot of social attention. ANBOUND research team thinks that the development function and supervision function of CBRC could actually be separated. In other words, remove the function of examining and approving banks and only keep its supervision function. CBRC will become a technical department of financial supervision. In the future, China should let more industrial capital enter banking industry. Meanwhile, it should actively develop community banks and inclusive finance. If keep following the thinking of developing large and middle sized banks, it is hard to solve problems radically.