China will keep disposing of non-performing loans this year to keep financial risks under control after a fast expansion of credit to mitigate the impact of the coronavirus pandemic, according to the chairman of China's banking and insurance regulatory body on Tuesday.

"We have not yet figured out a specific target, and we are talking with commercial banks, waiting for their assessments on their own performance," Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said at a press conference. 

The amount of NPLs to be disposed of this year is likely to increase, and the growth may continue in 2022. "But we have confidence in disposing the NPLs in a good manner," said Guo.

In 2020, China disposed a total of 3.02 trillion yuan ($466.6 billion), with banks' lending increased at a faster rate above 12 percent, according to data provided by the CBIRC.

China didn't adopt an excessively loose monetary policy last year to hedge risks of the COVID-19 pandemic. Some enterprises, however, may have difficulties paying back loans amid the crisis, so the NPL increased last year that which was inevitable, Guo said.