People’s bank of China. [Photo/Sipa]

BEIJING — China will keep the macro leverage ratio basically stable in 2021, the country’s central bank governor has said.

The COVID-19 blow to the Chinese economy led to a hike in the ratio of the country’s total liabilities to its GDP last year, according to Yi Gang, governor of the People’s Bank of China, in an interview with Xinhua.

As the pace of growth in the ratio has slowed since the third quarter of 2020, it is estimated that the ratio will get back in the zone of basic stability, Yi said.

Accordingly, the central bank needs to unveil measures to prevent the accumulation of financial risks while supporting the real economy, said the governor, calling for appropriate handling of risks related to individual financial institutions and key fields.

More efforts should be made to bolster the regulatory system for the financial sectors, and ensure the risks are addressed in compliance with laws and regulations, Yi said.

The central bank should also seek new approaches to replenish the capital for small and medium-sized banks, and intensify crackdown on illegal behaviors, he added.