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China Daily Website

China's financial system 'stable'

Updated: 2012-07-03 09:17
( Xinhua)

BEIJING -- Despite complex domestic and global economic conditions, China's financial system operated in a stable manner in 2011, with improving risk-aversion capability and deepening reforms, according to a central bank report released Monday.

The fiscal strength of the government, enterprises and individual households remained healthy, and financial infrastructure continued to be steadily built last year, the People's Bank of China said in the 2012 financial stability report.

Stress test results showed, 17 key commercial banks had a strong capability of withstanding the macro-economic shocks.

Bank's capital reserves were adequate, but with slowing deposit growth, the liquidity pressure was going up, according to the evaluation of the banking system.

Although risks in a few areas needed attention, the banking system generally remained healthy, the report noted.

In 2012, the central bank will continue to implement the prudent monetary policy, keep social financing at reasonable scale, and increase support to the real economy.

It will further deepen the reforms of the market-based interest rate and exchange rate's formation mechanism, and execute prudent oversight to step up risk control, the report said.