China's financial sector should intensify risk monitoring and eliminate those that could have systemic or regional impacts, a central bank report said on Friday.
The report, a summary of China's regional financial operation in 2014, was published by the People's Bank of China (PBOC) after Zhou Xiaochuan, the bank's governor, noted the necessity of controlling risk at a seminar on Thursday.
The central bank should "hold fast to the bottom line that no systemic or regional financial risk should occur," Zhou said.
The remarks came amid the country's attempts to liberalize more sectors and improve the financial system. China has started to lift restrictions on private capital, open securities market to global investors and loosen controls on foreign exchange rate of the yuan.
Given the economic slowdown, all the moves were made cautiously and regulators closely monitored any risk that may come along with reform measures.
The report believed the country's regional economy maintained a stable trend last year with positive structural adjustments, citing robust high-tech industries, emerging markets in western areas and dropping funding costs for companies.
The report hopes the financial sector could better serve the real economy. It asked banks to promote financial reforms, enhance efficiency and improve lending structure to facilitate regional economic adjustment.
Local authorities should continue to implement a prudent monetary policy and more frequently adopt fine-tuning measures, the report said.
