Chinese banks reported 11.4 percent of weighted capital adequacy ratio at the end of the third quarter, and the weighted core capital adequacy ratio reached 9 percent, said a report posted on the website of the China Banking Regulatory Commission (CBRC).

These ratios provide supporting evidence that the nation's banking industry is in good shape, at least for the time being.

China's banks extended 9.4 trillion yuan in the first three quarters, among which 61.6 percent were medium and long term loans. However, these loans are heavily concentrated in a few areas including infrastructure construction, property market, and manufacturing.

The lack of diversification is the most prominent risks facing China's banking industry in the long run, said Wang Huaqing, a senior official of CBRC.