Regulator to 'effectively control' expansion of local debt and shadow banking, official says

A persistent economic slowdown will create new financial risks for the banking sector, but measures will be taken to maintain the bottom line, a senior official from the China Banking Regulatory Commission said on Friday.

The rate of nonperforming loans by financial institutions stood at 1.64 percent last year, up from 1.49 percent at the end of 2013, according to the commission.