China expands oversight of major banks amid property sector risks

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China has expanded its list of domestic systemically important banks (D-SIBs) from 19 to 21, adding China Zheshang Bank to the list on Friday. The People's Bank of China and the National Financial Regulatory Administration (NFRA) released the updated list, which now includes six state-owned commercial banks, ten joint-stock commercial banks, and five urban lenders. This expansion signifies a move to strengthen macroprudential oversight and safeguard financial stability amid concerns about the property sector. Authorities aim to reinforce the supervision of these banks to ensure their safe operation, particularly as the property market faces a downturn. While non-performing loan ratios remain stable, containing potential risks from the property sector is a key policy priority for Beijing.
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