China's economic and financial conditions have undergone profound changes over the past few years. The asset scale of domestic banking and financial sectors has increased consistently and the country has also made great strides in the market-driven development of its financial sector.

The Financial and Economic Affairs Committee of the National People's Congress (NPC) advises competent departments to carry out research and survey over the law on regulation of and supervision over the banking industry and to make necessary revisions to it.

In recent years, several motions submitted by NPC deputies called for the amendment to the law to lead and guide the domestic banking sector to better serve the real economy, improve existing systems concerning the supervision of large shareholders, beef up risk management and market exit mechanisms, and add provisions on safeguarding the legitimate rights and interests of consumers in the financial market.

Revisions to the law started in July 2020. Relevant departments have conducted research and assessments in terms of corporate governance, shareholder supervision, risk management, the protection of financial consumers, and third-party supervision.

A draft amendment to the law has now been formed to solicit public opinions.