"China's overall financial risks are controllable, and 99 percent of the banking assets are within the safe boundary," said Sun Tianqi, head of the Financial Stability Bureau under the People's Bank of China (PBOC), on Wednesday during a briefing.

By the end of 2021, the total assets of China's banking industry stood at 345 trillion yuan, accounting for 90 percent of the total assets of the country's financial industry, according to Sun.

The PBOC's rating results in the fourth quarter of last year showed that among the 4,398 banking institutions, 4,082 were within the 7-level margin of safety, which accounts for 93 percent of the institutions that participated in the rating, and their asset scale accounts for 99 percent of the total, Sun said.

"The number of high-risk institutions accounted for 7 percent of the 4,398 banking institutions, and their assets scale only accounts for 1 percent of the total," said Sun. "Which means most of the small and medium-sized banks are within the PBOC rating's safe boundary."

Since April 18, clients of four rural banks in central China's Henan Province and one in neighboring Anhui Province found that they could not withdraw their cash. 

After an initial probe, the Henan authorities said on June 18 that the Henan New Wealth Group was found to have accessed and manipulated the online trading systems of the Yuzhou Xin Minsheng Village Bank and three other rural lenders.

"Since the incident, the PBOC has been actively cooperating with local governments and regulatory authorities, guiding branches to fulfill their responsibilities for maintaining financial stability in the region, monitoring liquidity risk and emergency protection," said Sun.