The People’s Bank of China said during its financial stability meeting that it will control credit risks in key areas, steadily resolve shadow banking risk and orderly handle highly risky financial institutions, according to a statement published on its website late Wednesday.
Currently, China’s financial operation is generally stable, financial risks are under control and the financial supervision system has been further improved. Also, the prudent management concept was strengthened, the market was gradually constrained and “barbaric expansions” were largely converged, the PBOC said.
The PBOC will continue to prevent risks in 2019, especially to avoid systemic financial risks.
Thus, the PBOC must balance the needs of stabilizing economic growth and preventing risks, and control credit risks in key areas; steadily resolve the risk of the shadow banking sector and rectify the asset management business of financial institutions; orderly handle risky financial institutions; improve corporate governance of financial institutions; promote the deposit insurance system; and deepen the reform and opening up of the financial industry.