China scores victory in containing financial risks in 2019

BUILDING THE SAFETY NET

The country's financial watchdogs have sought to strengthen weak links in regulations to prevent risks in 2019 in an active effort to forestall risks.

The government has rolled out interim regulations for the credit rating industry and started soliciting public feedback on trial measures on the supervision of financial holding companies as well as the evaluation of systematically important banks.

Tightened regulations sped up the exposure of commercial banks' non-performing assets and pushed them to make more efforts to get rid of bad loans, resulting in 176.5 billion yuan ($25.3 billion) more in bad loans disposed of in the first three quarters than the same period of 2018.

As another fixture of the safety net against risks, China's deposit insurance fund played a critical role in safeguarding the assets of Baoshang Bank's individual, institutional and interbank clients.

The PBOC report on China's financial stability called for efforts to improve the legal framework of risk control for financial institutions and advance amendments to laws and regulations on corporate bankruptcy and commercial banks.