Rating agency Fitch expected that a stable operating environment for Chinese mid-tier banks and their moderating risk appetite, if sustained, will reduce their intrinsic credit risks and enhance capital buffers despite near-term profitability pressures. These, together with stricter non-performing loan (NPL) recognition and active NPL resolution, could enhance their resilience through the cycle.The outlooks on the risk profile and asset-quality scores of most Fitch-rated Chinese mid-tier banks were revised to positive from stable at the most recent reviews, reflecting their declining shadow-banking activities and more disciplined growth appetite. The scores could be revised higher if these efforts are sustained.Related NewsUBS Ratings, TPs on CN Banks (Table)