China’s top banking regulator will continue to deal with the non-performing assets of banking institutions, while controlling the growth of new non-performing loans at the same time, said Wang Zhaoxing, vice chairman of the China Banking and Insurance Regulatory Commission, The Paper reported.
It will also pay attention to prevent liquidity risks of small and medium-sized banks and insurance agencies amid economic downturns, in order to prevent regional and systemic financial risks, Wang said.
Also, they will continue to focus on shadow banking activities that include interbank investment, interbank financing, entrusted loans and trust loans, according to Wang.
It is also important to prevent financial risks in the real estate sector, in particular, to control real estate development loans and personal mortgage loans with speculative intentions.
Meanwhile, the CBIRC will work with other departments to deal with local government debt, especially explicit debt.