Woofun AI reports that private banks are encountering significant obstacles on both asset and liability fronts. The previous reliance on lending assistance companies to channel loans has become unsustainable under new regulations, leading to a contraction in lending scale and profit margins.

Consequently, these institutions are compelled to lower interest rates and discontinue medium- and long-term deposit products to mitigate revenue losses from their shrinking credit business. With revenue growth stalled and high-cost deposits being actively reduced, private banks struggle with declining net interest margins, narrowed customer acquisition channels, and limited self-operating capabilities.