BEIJING — China's small and medium-sized banks are in stable operation and the risks they face are controllable, the country's top banking authority said on July 16. 

With sound fundamentals of capital, provision and profit, city commercial banks have the capability to fend off various risks, said Liu Rong, an official with the China Banking and Insurance Regulatory Commission (CBIRC).

The capital adequacy ratio of city commercial banks came in at 12.7 percent at present, while the provision coverage ratio and the non-performing loan ratio registered 150.5 percent and 2.34 percent, respectively, all running in a reasonable range.

Rural small and medium-sized banks, accounting for 85 percent of banking financial institutions nationwide, have seen an increasing ability to serve the real economy with their solid deposit base and controllable liquidity risks, said Hong Xiaoping, another official with the CBIRC.

Although a few small and medium-sized banks are indeed facing high risks, this will not weigh on the whole industry, said Xiao Yuanqi, chief risk officer of the CBIRC.

Xiao noted that the country's efforts in cracking down on illegal activities in the banking sector have paid off, creating conditions for the industry's healthy development.