Chinese major banks' average nonperforming loan ratio dropped to 1.33% at the end of May, the Shanghai Securities Newspaper reported, citing Guo Ligen, vice chairman of the China Banking Regulatory Commission, as saying.

Guo said China's banking industry should keep alert on the credit risks caused by the local governments' financing platform amid the booming economy for the past year.

According to statistics released by CBRC, Chinese major banks' average NPL ratio was 1.59% as of Mar. 31, down from 1.80% at the end of last year.

Last year, Chinese banks extended a total of RMB 9.59 trillion in new loans, RMB 4.69 trillion more than in 2008.

Early this year, CBRC urged China's banking industry to curb credit expansion and keep a close eye on the real estate market in a bid to strengthen risk control and credit management.