The role of the senior management team will be a key factor to determine the successful business transformation of Chinese banks that face critical challenges, global consulting firm McKinsey & Company said in a report on Monday.

The firm suggested that Chinese banks should improve the collaboration between their senior management teams and their boards of directors, enhance the top leadership's capability for strategic management and business execution, and build an effective human resource system to achieve talent-driven success.

Chinese banks are faced with key challenges, including slower economic growth, liberalized interest rate market, the rise of internet finance and the trend of financial deleveraging, which make the role of their top leadership a crucial factor for the banks to achieve sustainable success, the report said.

John Qu, senior partner of McKinsey and Company, said that the prevailing problems existing in Chinese banks include the lack of cooperation between the banks' chairmen and presidents and weak execution capability and innovative ability.

Qu added that Chinese banks should also develop and cultivate a business culture of risk management and increase transparency when it comes to the risk-related decision-making process.