PBOC Predicts Fewer High-Risk Banks as It Cracks Down

The PBOC reiterated it will prevent any systemic financial risks from happening and “defuse bombs with precision.”

(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 is likely to drop below 200 from 316 in the fourth quarter of 2021, the central bank said Thursday in a statement. At the peak in the third quarter of 2019, there were 649 banks listed in the category, according to the statement.