In this undated file photo, pedestrians pass the headquarters of the People's Bank of China in Beijing. (PHOTO BY KUANG DA / FOR CHINA DAILY)

BEIJING - China has the confidence, conditions, and capability to ensure no systemic financial risks arise due to consistent efforts to prevent and resolve these risks, the central bank said Thursday.

Risks accumulated over a long period in the country's financial system have been effectively dealt with, and financial risks are generally manageable, said a statement on the website of the People's Bank of China.

Risks accumulated over a long period in the country's financial system have been effectively dealt with, and financial risks are generally manageable, said a statement on the website of the People's Bank of China

Financial institutions of the banking industry have maintained stability as the sector's assets account for more than 90 percent of the financial industry.

According to the rating results by the bank in the fourth quarter of 2021, 4,082 of the 4,398 rated financial institutions fell within the safe boundary, and their assets accounted for 98.96 percent of the banking industry's total.

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Notably, 24 large-scale banks that boast nearly 70 percent of assets in the sector have reported favorable ratings, playing a significant role in stabilizing the country's financial system.

The number of high-risk banks is expected to decline to less than 200 at the end of the 14th Five-Year Plan period (2021-2025), while the figure fell for six consecutive quarters from a peak of 649 in the third quarter of 2019 to 316, the central bank said.

China will further improve its regulatory framework of monetary and macro-prudential policies as part of efforts to step up counter-cyclical adjustments and curb risk contagion.

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