The report released by the People's Bank of China (PBOC) on December 26 showed that in the first half of 2025, the PBOC conducted central bank financial institution ratings on 3,529 banking institutions. The rating results indicated that China's banking institutions are generally operating robust ly, with financial risks generally converging and remaining overall controllable.

It is understood from reporters that the rating scale is divided into 11 levels, namely levels 1-10 and level D, with a higher numerical value indicating greater institutional risk, and level D signifying that the institution has gone bankrupt, been taken over, or been revoked. Rating results from level 8 to D fall into the "red zone," indicating that the institution is in a high-risk state.

The "China Financial Stability Report (2025)" released by the PBOC on the same day revealed that 3,217 banks received ratings of 1-7, accounting for 98% of the total assets of all participating banks. China's banking institutions are generally operating robust ly, with risks remaining overall controllable.

In terms of institution types, national banks have performed well in the ratings, while some local small and medium-sized banks have certain risks. Regionally, the inventory (existing) risks in the vast majority of provinces have been significantly reduced, and the regional financial ecosystem continues to improve. Nine provincial-level regions, namely Beijing, Tianjin, Shanghai, Chongqing, Zhejiang, Jiangsu, Jiangxi, Fujian, and Tibet, have no banks in the "red zone" within their jurisdictions.

A relevant person from the PBOC stated that in recent years, the financial system has steadily advanced the risk disposal of key institutions and regions. Central and local governments have coordinated their efforts, and a "one-province-one-policy" approach has been adopted to systematically advance the reform and risk resolution of local small and medium-sized financial institutions. In accordance with market-oriented and legal principles, a variety of methods, including mergers and acquisitions and market exits, have been comprehensively employed to prudently handle risks in small and medium-sized banks, resulting in a significant reduction in the number of high-risk small and medium-sized banks.

It is reported that in the next step, the financial system will establish a comprehensive macro-prudential management system, strengthen the monitoring and assessment of systemic financial risks, and enhance macro-prudential management in key areas. It will prevent and resolve financial risks in key areas, resolutely advance financial support for resolving the debt risks of financing platforms, actively and prudently handle risks in small and medium-sized financial institutions, conduct prudent macro-management of real estate finance, and firmly uphold the bottom line (bottom line) of preventing systemic financial risks.

The report released by the People's Bank of China (PBOC) on December 26 showed that in the first half of 2025, the PBOC conducted central bank financial institution ratings on 3,529 banking institutions. The rating results indicated that China's banking institutions are generally operating robust ly, with financial risks generally converging and remaining overall controllable.

It is understood from reporters that the rating scale is divided into 11 levels, namely levels 1-10 and level D, with a higher numerical value indicating greater institutional risk, and level D signifying that the institution has gone bankrupt, been taken over, or been revoked. Rating results from level 8 to D fall into the "red zone," indicating that the institution is in a high-risk state.

The "China Financial Stability Report (2025)" released by the PBOC on the same day revealed that 3,217 banks received ratings of 1-7, accounting for 98% of the total assets of all participating banks. China's banking institutions are generally operating robust ly, with risks remaining overall controllable.

In terms of institution types, national banks have performed well in the ratings, while some local small and medium-sized banks have certain risks. Regionally, the inventory (existing) risks in the vast majority of provinces have been significantly reduced, and the regional financial ecosystem continues to improve. Nine provincial-level regions, namely Beijing, Tianjin, Shanghai, Chongqing, Zhejiang, Jiangsu, Jiangxi, Fujian, and Tibet, have no banks in the "red zone" within their jurisdictions.

A relevant person from the PBOC stated that in recent years, the financial system has steadily advanced the risk disposal of key institutions and regions. Central and local governments have coordinated their efforts, and a "one-province-one-policy" approach has been adopted to systematically advance the reform and risk resolution of local small and medium-sized financial institutions. In accordance with market-oriented and legal principles, a variety of methods, including mergers and acquisitions and market exits, have been comprehensively employed to prudently handle risks in small and medium-sized banks, resulting in a significant reduction in the number of high-risk small and medium-sized banks.

It is reported that in the next step, the financial system will establish a comprehensive macro-prudential management system, strengthen the monitoring and assessment of systemic financial risks, and enhance macro-prudential management in key areas. It will prevent and resolve financial risks in key areas, resolutely advance financial support for resolving the debt risks of financing platforms, actively and prudently handle risks in small and medium-sized financial institutions, conduct prudent macro-management of real estate finance, and firmly uphold the bottom line (bottom line) of preventing systemic financial risks.