They must pay special attention to the development of their non-interest and electronic-financial businesses.

Banks' executives generally believe 20 per cent of a bank's best customers contribute 80 per cent of a bank's profit.

Commercial banks must target these customers when implementing new services, especially when developing non-interest products.

These banks' primary functions currently are issuing loans, accepting customers' deposits and providing settlement services.

But non-interest services - including international settlement businesses and project financing - have become major sources of profit for foreign banks.

Such services contribute between 40 per cent and 67 per cent to a bank's profit.

China's banks must develop and implement such products or they will lose market share.

The banks must also develop online banking, online securities and online insurance products.

(China Daily September 2, 2002)