(Bloomberg) — The People’s Bank of China said it expects the number of high-risk banks to continue to decline in coming years, vowing to persist with its campaign to curb financial risks in the economy.
By 2025, the number of lenders in the “high-risk” category in the PBOC’s quarterly reviews will likely drop below 200 from 316 in the fourth quarter of 2021, the central bank said in a statement Thursday.
At the peak in the third quarter of 2019, there were 649 banks listed in the category, according to the statement.
High-risk banks accounted for only 1.04% of overall assets in the banking industry last year, indicating the sector’s stability, the PBOC said.
China had 4,398 banking institutions in the last quarterly review, it said.
The PBOC reiterated it will prevent any systemic financial risks from happening and “defuse bombs with precision.”
The central bank said it curbed speculation in cryptocurrency trading within the country, with the share of onshore Bitcoin trading volume in the world plummeting to 10% from over 90% in the past.
Companies have learned market principles from high-profile bankruptcies in recent years such as those of Baoshang Bank Co.
and HNA Group Co., and compliance with laws and regulations is the mainstream practice now, the PBOC said.
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