China Tightens Rules on 21 Major Banks to Tackle Property Sector Risks
February 16, 2026
China has expanded its list of systemically important banks (D-SIB) from 19 to 21. This list includes six state-owned banks, 10 joint-stock banks, and five urban lenders. Together, they hold most of China's financial assets. The central bank and regulators said in a joint statement, "We will continuously strengthen the supplementary supervision of systemically important banks and promote their safe, sound operation." Despite concerns, Chinese banks have not seen a major rise in bad loans. The non-performing loan ratio stayed at 1.5 percent at the end of 2025, unchanged from last year, based on data from the National Financial Regulatory Authority (NFRA). Large commercial banks had a 1.22 percent bad loan ratio, and joint-stock banks stood at 1.21 percent. Still, controlling risks from the property sector remains a key policy focus.
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Tags:
China Banks
D-Sib
Property Sector
Non-Performing Loans
Bank Regulation
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