Chinese banks continues to face three major kinds of risk, namely credit risk, performance risk and trans-business risk, said Xiang Junbo, deputy governor of the People's Bank of China, the central bank.

Xiang said here Tuesday that credit risk is the major risk now. Due to lack of information, banks sometimes make wrong judgment of loan and investment.

He said performance risk became an issue when information technology system turned invalid, but financial institution did not make instant reaction to mistakes, cheat, or immoral behaviors and suffered from losses.

Xiang said China's financial reform to prevent risks has become more and more important. Financial law can reduce the risks in the financial industry. The People's Bank of China is now pushing forward relevant law.

(Xinhua News Agency April 27, 2005)