参考答案： With the evolution of financial crisis, more instabilities and new risks appear in both domestic and global financial market.
Currently, the international financial market and domestic financial market are increasingly interconnected to one another. Risk contagion became more evident across the on-balance sheet and off-balance sheet. Formal financial system and private lending market are closely related as well.
Despite the rapid growth of the profitability of China’s banking industry, potential risks still need high attention.
The CBRC will spare no effort to avoid systemic and regional financial risks, maintain the continuity and stability of regulatory policies, urge banking industry to take precautions to manage potential risks, improve the five-category loan classification standards, and fully carry out the regulatory requirements of risk management
Meanwhile, we will encourage banking institutions to build up the foundation of risk management, cultivate sound risk culture and awareness, construct steady risk appetite framework, and establish an overall risk management concept.