International ratings services provider Standard & Poor's has given a positive report on China's mainland banking system.

Its report on prospects for the Asia-Pacific Banking industry says, although China's banking sector still faces key challenges, it is making great progress, China Radio International reported Thursday.

It says the government's effort to pour capital into its banks and provide tougher financial controls will lay a solid foundation for a boom of banking in China.

Major Asia-Pacific economies have gradually recovered from the aftermath of 1998 financial crisis and the September 11 attack on the US in2001.

Standard & Poor's report also noted that reforms in these countries' banks are creating better credibility system.

Source: CRI news