China Regulator Says Risks Are Under Control at Small Banks

The risks at China’s small banks are manageable after disposing of non-performing loans and replenishing capital over the past years, the nation’s banking watchdog said.

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

China has nearly 4,000 small and medium-sized lenders that collectively control almost $14 trillion in assets. Confidence in the nation’s smaller banks has waned since 2019, when the government seized a bank for the …