China's banking sector is entering "new normal"; a typical sign is the continued rise of both the amount and the ratio of non-performing loans.

Anbound’s scholars point out that, it is worth noting that China’s banking industry have a tendency to underestimate the ratio of non-performing loan and the actual scenario could be far worse, the severe asset deterioration in certain regions’ banks might cause regional financial risks.

Currently, as the real economy continue to endure downward pressure and the corporate profitability declines, the high debt level will continue to increase the operational risks of banking sector.