Financial risks effectively controlled: PBOC

Financial risks have been effectively controlled in China and the country has sufficient macroeconomic policy tools, sound supervision system and mechanisms to prevent systemic risks, the central bank said on Monday.

The People's Bank of China issued the 2019 China Financial Stability Report on Monday. It said the central bank will build a long-term effective mechanism for risk prevention. It also will accelerate the issuance of detailed regulations on financial holding groups and systemically important financial institutions.

For financial holding groups, the new rules will be based on the unified supervision on combined balance sheets, and build up a special disposal mechanism. The relevant laws, including the Law of the People's Bank of China and the Commercial Bank Law, will be revised to improve the risk disposal system, according to the report on the PBOC website.

It said that local and structural liquidity risks of some small and medium-sized banks have been resolved.

In the face of complex situations at home and abroad, the central bank will continually stabilize the financial system and promote the effectiveness of macroeconomic policies to support real economic growth, the report said.