The continuously exposed operational risks not only make financial institutions suffer big losses, but also impair their reputation. For example, the latest exposed major cases in financial system have negative impact on the financial industry’s reputation both at home and abroad. Third, cross-market and cross-sector financial risks become new unstable elements in China’s financial industry.
The consecutive quarters of positive year-on-year economic growth point to prospects of sustainable recovery. Nevertheless, with recovery still in its nascent stage, the BSP is keen to maintain policy support for the economy. We will properly time our exit strategy as withdrawing support either too early or too late may have undesirable consequences to the economy.