China’s top bank regulator has warned that serious risks are building up in the financial sector and linked improving financial controls of the institutions to the “important task” of maintaining social stability in the country.
The comments from Liu Mingkang, chairman of the China Banking Regulatory Commission, contrasted with the bullish outlook presented by most state banks in their interim reports in recent weeks.
The banks mostly dismissed concerns about risks building up in their balance sheets after an unprecedented credit boom over the past two years.
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