The establishment and development of private banks are of great benefit to improve the financial system in China, since it has been in an important period of the financial system reform. Despite such an excellent opportunity, private banks are still faced with many risks, such as imperfect legal environment, fierce competition in the banking sector, lack of outstanding management personnel and a proper market position. In order to address these issues, the government should improve the legal environment, and enhance effective supervision. On top of this, private banks need to expand profit channels through financial innovation, have an appropriate market position and improve the management level. Systematology by Bertalanffy (1937) is valuable for analysis of the problem.