Native banking is a prominent factor in both the Tientsin and Peking money markets. Locally, the native bank is called Yin Hao, which means “Silver Shop” or firm. When modern banks arose, the native banks were much affected, but due to the stable foundation of the enterprise and the old business custom of the past hundred years, they still assist in monetary operations on a large scale. The geographical connection of Tientsin and Peking is very close, thus the conditions and evolution of Tientsin and Peking native banks are very similar. This chapter illustrates the development of the enterprises by period: the primitive period, Piao Hao period, boom period, period of depression, and the period of reformation, Due to the fact that the native banks originated from various sources, there were different groups which dominated according to the periods. In general, each group is named trom the native town of the manager, not of the proprietor of the native bank.