China’s Small Bank Risks ‘Are Under Control,’ Top Regulator Says

(Bloomberg) — The risks at China’s small banks are manageable after disposing of nonperforming loans and replenishing capital in recent years, the nation’s banking watchdog said.

“Generally speaking, risks are under control,” said Xiao Yuanqi, a vice chairman of the China Banking and Insurance Regulatory Commission, at a briefing Thursday in Beijing. The regulator is paying “a lot of attention” to their development, he said.