<p>China will steadily reduce the number of high-risk institutions to help fend off systemic financial risks, its central bank said on Wednesday</p>.<p>Reforms of problematic small and mid-sized financial institutions have made key progress and illegal financial activities have been curbed, the People's Bank of China (PBOC) said in a statement after its annual meeting on financial stability.</p>.<p>The central bank will continue to follow the guidance of "overall planning and coordination, differentiated policies and precise bomb disposal", it said.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/opinion/china-s-loan-to-pakistan-will-directly-impact-india-1200024.html" target="_blank">China’s loan to Pakistan will directly impact India</a></strong></p>.<p>"It is necessary to strengthen the financial risk disposal mechanism and capacity building, strengthen monitoring, early warning and evaluation," the central bank said.</p>.<p>The central bank will improve legislation and the financial stability guarantee fund system, and improve the role of deposit insurance, the central bank added.</p>.<p>China's economy showed a gradual though uneven recovery in the first two months, but statistics bureau spokesman Fu Linghui told a briefing on Wednesday that corporate and personal balance sheets damaged during the pandemic would need time for repair.</p>.<p>Central bank chief Yi Gang told a news conference on March 3 that China has reduced the number of high-risk small- and medium-sized financial institutions to more than 300 from over 600 over the past three years.</p>.<p>The government has unveiled plans to set up a new regulator - the National Financial Regulatory Administration - which will take over some regulatory responsibilities, including overseeing financial holding companies and investor protection, from the PBOC. "The revamp signals a shift in the government’s priority towards financial stability and de-risking the financial exposure of local governments and financial institutions," ANZ analysts said in a note.</p>.<p>"Local governments’ explicit debts have increased 16% year-on-year over the past five years. Their implicit debts may have reached 60 trillion yuan ($8.69 trillion), or half of China’s GDP, according to our estimates," ANZ said.</p>
<p>China will steadily reduce the number of high-risk institutions to help fend off systemic financial risks, its central bank said on Wednesday</p>.<p>Reforms of problematic small and mid-sized financial institutions have made key progress and illegal financial activities have been curbed, the People's Bank of China (PBOC) said in a statement after its annual meeting on financial stability.</p>.<p>The central bank will continue to follow the guidance of "overall planning and coordination, differentiated policies and precise bomb disposal", it said.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/opinion/china-s-loan-to-pakistan-will-directly-impact-india-1200024.html" target="_blank">China’s loan to Pakistan will directly impact India</a></strong></p>.<p>"It is necessary to strengthen the financial risk disposal mechanism and capacity building, strengthen monitoring, early warning and evaluation," the central bank said.</p>.<p>The central bank will improve legislation and the financial stability guarantee fund system, and improve the role of deposit insurance, the central bank added.</p>.<p>China's economy showed a gradual though uneven recovery in the first two months, but statistics bureau spokesman Fu Linghui told a briefing on Wednesday that corporate and personal balance sheets damaged during the pandemic would need time for repair.</p>.<p>Central bank chief Yi Gang told a news conference on March 3 that China has reduced the number of high-risk small- and medium-sized financial institutions to more than 300 from over 600 over the past three years.</p>.<p>The government has unveiled plans to set up a new regulator - the National Financial Regulatory Administration - which will take over some regulatory responsibilities, including overseeing financial holding companies and investor protection, from the PBOC. "The revamp signals a shift in the government’s priority towards financial stability and de-risking the financial exposure of local governments and financial institutions," ANZ analysts said in a note.</p>.<p>"Local governments’ explicit debts have increased 16% year-on-year over the past five years. Their implicit debts may have reached 60 trillion yuan ($8.69 trillion), or half of China’s GDP, according to our estimates," ANZ said.</p>