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Shang said total excess reserves in the country’s banking system totalled 1.5 trillion yuan ($241.94 billion) as of Friday [Xinhua]
China Banking Regulatory Commission (CBRC) Chairman Shang Fulin said the recent cash crunch would not affect the stable operation of Chinese banks, but he acknowledged that some banks needed to improve their liquidity and risk management.
“Recently, some international organizations and industry insiders have expressed worry about a slowdown in China’s economic growth, local government debt, the real estate market, and related areas,” Shang said.
“Currently everyone is fully aware of the risks. As long as we take proper risk control measures, these risks are controllable,” Shang said.
Shang said total excess reserves in the country’s banking system totaled 1.5 trillion yuan ($241.94 billion) as of Friday, more than double the normal payment and settlement demand.
The CBRC chairman said the authorities would continue regulating local government financing vehicles (LGFVs), and work out plans to standardize LGFVs.
Shang said the total outstanding loans to the LGFVs stood at 9.59 trillion yuan by the end of March, and the non-performing loans ratio was at 0.14 per cent.
CBRC will also strengthen regulation over commercial bank-issued wealth management products (WMPs). He urged commercial banks to enhance oversight of their WMPs and improve transparency of WMPs sales.
According to Shang, by the end of March, assets in these WMPs totaled 8.2 trillion yuan.
Source: Agencies
