The China Banking Regulatory Commission is planning to create a negative list of financial products this year, to guard against major risk.

Official statistics shows bad loans of commercial banks have increased for the 17th consecutive quarter as of the end of 2015.

President of the CBRC, Shang Fulin, says the People's Bank of China plays a significant role in the plan.

"The central bank will implement unified management and approval of the financial products which have its investments. Meanwhile, it will publish a catalog of financial products forbidden to commercial banks. The central bank prohibits commercial banks to buy fund-raising products which are not publicly issued by unauthorized organizations."

The CBRC has also decided to invest more in the structural reforms of traditional industries.

Shang says the CBRC is now working on measures for banks to help enterprises reduce overcapacity.

"We will beef up our efforts to release regulations on rearrangement of companies' financial debt. We hope to enhance the banks' ability to help enterprises eliminate their losses, transform structures, develop themselves and tide over their difficulties."

Meantime, Shang has pledged that the banking industry will increase its support for start-ups with low cost loans.

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