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Chinese watchdog says risks in smaller banks generally under control

Published 06/23/2022, 04:16 AM
Updated 06/23/2022, 04:20 AM
© Reuters. FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter/File Photo

BEIJING (Reuters) - Risks in China's medium-sized and small banks are generally under control despite some individual banks having engaged in criminal activities, the vice chairman of the country's banking and insurance regulator said on Thursday.

© Reuters. FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter/File Photo

Authorities will draw up risk-disposal strategies for those in trouble and push to replenish their capital, Xiao Yuanqi told a briefing, adding that about 5.3 trillion yuan of non-performing assets at smaller banks have been resolved in the past five years.

Three banks in China's central Henan province have frozen at least $178 million of deposits, leaving businesses unable to pay workers and individuals locked out of savings, depositors told Reuters.

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