China puts another big bank under stricter watch – why now?
South China Morning Post
by Carol YangFebruary 15, 2026
AI-Generated Deep Dive Summary
China has expanded its list of domestic systemically important banks (D-SIBs), adding China Zheshang Bank to the list as part of efforts to strengthen financial oversight. This move comes amid concerns about the property sector’s debt exposure and the potential risks it poses to the broader financial system. By designating additional D-SIBs, Beijing aims to enhance macroprudential supervision and safeguard financial stability.
The updated list now includes 21 institutions, up from 19 in 2021, with six state-owned commercial banks, 10 joint-stock commercial banks, and five urban lenders. These institutions account for the majority of China’s financial assets. The inclusion of China Zheshang Bank, a joint-stock lender with total assets of 3.35 trillion yuan (US$485 billion), underscores the government’s commitment to ensuring the safety and soundness of systemically important banks.
Despite current stability in the banking sector—non-performing loan ratios remain steady at 1.5% for commercial banks overall, with large commercial banks at 1.22% and joint-stock commercial banks at 1.21%—managing spillovers from property sector risks remains a key priority. While Chinese banks have not yet reported a significant rise in bad assets, the ongoing property market downturn necessitates continued vigilance.
This expansion of D-SIBs reflects China’s proactive approach to managing financial risks while avoiding panic. By maintaining oversight and ensuring the stability of its banking system, Beijing aims to mitigate potential disruptions caused by the property sector’s struggles. This step is part of a broader strategy to maintain economic growth and stability, which are critical not only for China but also for global markets closely tied to its economy.
For readers interested in world affairs, this development highlights China’s ongoing efforts to navigate complex economic challenges and underscores the importance of financial
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Originally published on South China Morning Post on 2/15/2026