BEIJING — Risks in China’s banking industry are generally controllable and the authorities will work to prevent systemic financial risks, the head of the country’s banking regulator said on March 12.

China’s banking sector is in good and stable condition, said Shang Fulin, chairman of China Banking Regulatory Commission (CBRC), at a press conference on the sidelines of the annual parliamentary session.

Capital adequacy ratio of Chinese commercial banks at the end of 2015 stood at 13.45 percent, higher than the start of last year, and was at a relatively high level, Shang said.

Although the ratio of non-performing loans of commercial banks had risen somewhat to 1.67 percent by the end of last year, it was still at a low level by international standard, he said.

He said that China will step up supervision to forestall risks. Measures include “real name management” of enterprises mired in overcapacity and the “zombie enterprises,” to ensure the banks will make informed decision when granting loans.

More stress tests will be carried out to prevent liquidity risks of banks, Shang said.

Shang dismissed the recent downgrading of outlook on China’s sovereign bonds by some international rate agency, saying that constituted “a misjudgment of the condition of China’s banking industry.”

Earlier this month, Moody’s cut its outlook on China’s sovereign bonds from stable to negative. The downgrade was based on concerns over China’s fiscal strength, its foreign exchange reserves and uncertainty about its ability to implement economic reforms.