Thus, I believe that the overwhelming priority is to review the current system of credit provision within which deposit-taking and lending business of banks play a dominant role. The system has long been in place and can be called an entrenched custom. The current system tends to concentrate various risks on banks’ balance sheets.
Therefore, to achieve more efficient credit provision, we need to not only identify the factors causing this concentration of credit risks at banks but also seek persistently to reduce them. B.