The People's Bank of China convened its 2025 financial stability work conference, reviewing 2024 results and setting the next-stage agenda for 2025 with a continued focus on preventing and defusing financial risks in key areas and strengthening the financial stability framework. The meeting assessed that the financial sector is operating overall steadily, with financial risks converging and remaining controllable and with financial institutions’ operating and supervisory indicators within reasonable ranges. Priorities for 2025 include enhancing technology-enabled risk monitoring and the early-warning framework, improving mechanisms to assess and identify systemic risk, and promoting market-based and rule-of-law approaches to risk resolution through a responsibility framework aligned with matched rights and responsibilities and compatible incentives and constraints. Work will also explore expanding the central bank’s macroprudential and financial stability functions, enriching the policy toolkit, and increasing risk-resolution resources by strengthening the deposit insurance fund and the financial stability guarantee fund.

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