On Saturday, China's chief banking authority said that its financial resources in the banking system were enough. It guaranteed to control the risks present in local government debt, assets and shadow banking.
At a financial assembly on Saturday, the chairman of the Chinese Banking Regulatory Commission, Shang Fulin, uttered the banks have sufficient funds to satisfy settlement requirements. He further assured the people about the reserves present even if a cash crisis transpired in the last two weeks.
"Over the last few days, due to multiple factors, the problem of tight liquidity has appeared in the market. But overall, liquidity in our banking system really isn't scarce," Shang stated at the Forum in Shanghai. "Currently everyone is fully aware of the risks. As long as we take proper risk control measures, these risks are controllable."
He said China's banking network had a total of Yuan 1.5 trillion excess funds that was more than enough for payments and settlement needs.
At the end of the first quartile, according to Shang, a sum of yuan 9.59 trillion remained for the bank credits to local government investment vehicles.
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