China Banking Regulatory Commission chairman Liu Mingkang said "the risk-control situation [in Chinese banks] remains grim", at a meeting on Monday. He added that China needed to encourage "banking institutions to strengthen internal accountability and regulatory accountability".

He said the restriction of "shadowing" activities was crucial, and that risk must be better managed by bringing off-balance-sheet trust loans back onto the banks' books.

In the speech, which was posted on the commission