Regulator tells banks to focus on risk, credit structure

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.