The China Banking Regulatory Commission on Wednesday urged financial institutions to strengthen their risk management and optimize their credit structures amid slowing growth in the world's second-largest economy.

Chinese commercial banks' non-performing loan ratio was 0.96 percent as of June 30, with a balance of 539.5 billion yuan ($88 billion), flat compared with the end of the first quarter, according to a circular posted on the regulator's website.

Banks must prevent a large rebound in bad loans in the remainder of the year, amid slowing growth in China, said Shang Fulin, head of the CBRC, during a meeting on Wednesday. Shang said lenders must strictly avert risks associated with wealth management products.