Abstract: Taking typical small and medium-sized listed banks as the research subjects, this study employs the AHP-FCE evaluation model to measure and analyze their sustainable development capacity from three dimensions: risk level, profitability, and development capacity. The results indicate that, overall, small and medium-sized listed banks in China exhibit certain sustainability in their development. However, in terms of dimensions, development capacity and profitability contribute significantly to the sustainable development of these banks, while risk factors limit their sustainability, indicating an imbalance between profitability and security for these banks.