Central Bank Reports Controlled Risks In China's Banking Institutions

According to the China Financial Stability Report 2023 released by the People's Bank of China on Friday, banking institutions in the country have maintained overall sound operations with controlled risks during the second quarter of this year.

The report, which assessed 4,364 banking financial institutions in China quarterly for stability and risks, highlighted that 3,655 banks, constituting 98.28 per cent of the total assets among these institutions, were operating safely.

Although risks were identified in some smaller and medium-sized financial institutions in rural areas, the report emphasised that larger banks received favorable ratings, contributing to the overall stability of the financial system.

It further outlined the central bank's ongoing initiatives, stating that efforts will persist in advancing reforms for smaller and medium-sized banks, addressing risks, managing potential risks for city commercial banks and rural credit cooperatives and intensifying the restructuring and reform of rural banks.