The commercial banks in China has a better performance during 2018，despite the real economy was under considerable downward pressure. The profitability of commercial banks has improved，especially for small and medium-sized banks with more inter-bank business，whose net interest margin has increased significantly due to abundant liquidity. Since the second quarter，the overall non-performing loan ratio of the commercial banks has increased slightly，which was largely caused by the more sufficient risk exposure of rural financial institutions under the strong supervision，while the non-performing loan ratio of listed banks in China has declined. Although better performance has been achieved in 2018，the challenges faced by the commercial banks cannot be ignored. In the first half of 2018，banks had suffered the economic downturn and greater liquidity risk of the enterprise sector （especially private enterprises），owing to the change of internal and external economic environments as well as the financial deleveraging，As risks of enterprise sector would inevitably be transmitted to the banking system，the asset quality of banks will remain a concern for some time to come.