Banks are unlikely to face a cash crunch as the central bank pursues targeted monetary easing, reports Wu Yiyao from Shanghai

While monetary easing has helped reduce liquidity pressures for lenders in China, market insiders and analysts said banks need to strengthen their management to avoid long-term risk as well as a repeat of last year's credit crunch.

The People's Bank of China's recent moves to launch targeted reserve requirement ratio cuts have helped release lenders' liquidity.