CBRC tells banks to set up stronger controls on risks

The joint-stock commercial banks in China should establish rigid controls and prevent further growth of credit risks, said Shang Fulin, chairman of the China Banking Regulatory Commission.

"We need to examine thoroughly the financing situation of the 'zombie companies' and accelerate the disposal of nonperforming loans," he said during a keynote speech to leaders of the 12 national joint-stock commercial banks at the 2016 Annual Conference of National Joint-stock Commercial Banks in Tianjin on Monday.

Figures from the CBRC show that the NPL balance of Chinese joint-stock commercial banks in the 3rd quarter of 2016 reached 317 billion yuan ($45.95 billion), up about 7 percent from the 2nd quarter. The NPL ratio in the 3rd quarter was 1.67 percent, while that in the previous quarter was 1.63 percent.