PBOC emphasizes stability as global risk mounts

The People's Bank of China, the country's central bank, vowed to improve the system of ensuring financial stability on Wednesday as financial risk prevention has become a global focus after the failure of Silicon Valley Bank.

The central bank said it will work to improve legislation regarding financial stability, perfect the rules of the financial stability guarantee fund and give better play to the function of deposit insurance, all to guard against systemic financial risks.

Efforts will be made to proactively address the problems of high-risk institutions and ensure all those involved assume full responsibilities of risk resolution, the PBOC said in a statement after holding a work conference on financial stability.

China's financial system is performing steadily with risks under control, the statement said, thanks to the sound operation of the country's banking institutions, especially large ones that have maintained high credit ratings.

"The country has made significant progress in the reform and risk resolution of a few troubled small and medium-sized financial institutions," the PBOC said, adding illegal financial activities have been effectively cracked down on while financial markets are performing within expectations.