According to Caixin on Sunday, Zhou Liang, vice chairman of the Insurance Regulatory Commission of the Bank of China, said that China would take measures such as management restructuring and capital injection to strengthen the financial situation of small and medium-sized banks.
According to the report, Zhou said at the Caixin Summit on Sunday that for individual financial institutions with major problems, reform and restructuring should be used to smooth out risks and "scalpel" should be used as less as possible.
In less than two weeks, two small local banks in China have run into a series of bank runs because of their poor management and liquidity problems. This brings the health of China's small banks to the attention of regulators once again
Zhou Liang said that there are many reasons for the risk, including the pressure of the internal and external environment, as well as the weak links in the governance of small and medium-sized financial institutions. In addition, under the downward pressure of the economy, lending enterprises also have some bad situations.
Zhou Liang said that the small and medium-sized financial institutions with problems should have a physical examination to help them find ways to resolve risks, improve corporate governance, and guide them to invest more funds in the real economy and projects related to the actual needs of the people.
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