PHOTO PHOTOS: Chinese characters who read, "severely disrupting the financial order, endangering economic, financial security and even social stability" are seen scrolling through a rural commercial bank branch of Yuchuan China's Fujian District, Zhijun, China. on October 30, 2019 REUTERS / Huizhong Wu
BEIJING (Reuters) – China will take steps, including management restructuring and fund infusion, to boost the weakening profiles of its smaller banks, the vice president of banking and insurance regulator said in a statement on Sunday.
As financial stability remains a top priority, the regulator will use reform and restructuring as a key approach to addressing banking risks, rather than doing "operations", said Xiu Liang, vice president of the Chinese Banking and Insurance Regulatory Commission (HBIRC), in a forum in Perang. on Sunday, Kaiksin reported.
The health of smaller banks in China has recently been re-examined as two local lenders underwent banking in less than two weeks, fearing mismanagement and liquidity problems.
"Smaller banks are small financial institutions in size, but carry a high risk of expansion," Ow said.
The smaller sector faces risks due to the difficult macro environment both at home and abroad, poor management of smaller banks and credit risks caused by deteriorating financial conditions of the companies, the OU said.
Owou said some of the reform steps include improving corporate governance, writing off non-performing assets and replenishing capital.
"For institutions that have relatively serious problems, they need to introduce new strategic investors to carry out structural reforms," ouou said.
Earlier this year, the rare seizure of the then little-known Baoshang government and the rescue of Jinzhou Bank and Bank Zhengfeng revived concerns about the primary health of hundreds of small lenders in the country as China's economic growth slowed to nearly three decades. .
Reporting by Cheng Lang and Zhivani Singh; Edited by Sri Navaratin