PBOC official: 99 percent of bank assets in China safe

Financial risks in China are generally under control, with 99 percent of the country's bank assets rated to be safe, according to an official of the People's Bank of China, the central bank.

The comments were made by Sun Tianqi, head of the financial stability department of the bank, at a press conference held by the State Council, China's cabinet, in Beijing on Wednesday.

He was replying to a question about the recent drama in central Henan Province, where a large number of depositors of local rural banks have been protesting against frozen withdrawals.

The rural banks in Henan caught up in the drama, Sun said, were among 316 high-risk banks in the country according to a PBOC rating from the fourth quarter last year.

These banks, however, accounted for only 7 percent of all banks rated by the central bank, and their assets constituted only 1 percent of all assets of such banks, he pointed out.

"This is to say that most small and medium banks in China are considered to be safe with regards to their assets by the PBOC," Sun noted.

The official said that the PBOC has been working in tandem with local governments and financial authorities to deal with the financial risk outbreaks at the rural banks in Henan and has instructed its branch there to closely monitor the risks and ensure emergency supplies.