BEIJING -- Senior Chinese bankers have complained of slowing profit growth due to heightened competition.

"China's banking industry is going through an unprecedented transformation. The climate is bitingly cold for many banks," said Pingan Bank President Shao Ping at a banking industry forum.

Profit growth in listed banks dropped to 3.2 percent in the first quarter of 2015, from an annual 7.7 percent in 2014 and 12.8 percent in 2013, Shao said.

China is preparing to free up deposit interest rates. Although there is no timetable, insiders expect the liberalization to come within this year.

As smaller banks may eat into client bases with higher interest rates, Shao said big banks need to adjust to better manage assets and liquidity.

Zhu Hexin, Bank of China's vice president, said emerging lenders like peer-to-peer financiers, which make funding possible without banks, are "significantly affecting" traditional institutions.