China is designing a deposit insurance system and a mechanism for closing troubled banks to better cope with the risks generated by financial reforms, China's top banking regulator said.

In an interview with Qiushi Journal, a political periodical run by the Central Committee of the Communist Party of China, Shang Fulin, head of the China Banking Regulatory Commission, called for a more forward-looking perspective on risk control.

Shang said risk control remains a monumental task, given the slowing economy, rising bad assets, industrial overcapacity and "shadow banking".