China is capable of preventing systemic financial risks given the country's sound and stable economic growth, Premier Li Keqiang said Tuesday.[Special Coverage]
The capital adequacy ratio and provision coverage ratio of the Chinese banking sector are higher than required by international standards, Li said. Banks must also put aside reserves worth about 15 percent of total deposits, meaning the banking sector has more than 20 trillion yuan (.16 trillion) as reserves, according to Li.
The premier made the remarks at a news conference after the closing meeting of the annual session of the 13th National People's Congress.
Li said China has achieved double-digit growth of fiscal revenue in the first two months of this year and the government is confident it will achieve its main economic development targets.
The government will continue to lower its fiscal deficit ratio, but this does not mean any change in the country's proactive fiscal policy stance, Li said.
Meanwhile, China will continue to crack down on illegal fundraising to protect the interests of investors. The merger of the country's banking and insurance regulators is aimed at preventing activities that evade regulation, he added.