Up to five privately financed banks could be created this year under plans to open up the state-owned industry

This article is more than 6 years old

This article is more than 6 years old

China's bank regulator says it will allow the creation of up to five privately financed banks this year as part of reforms to open up the state-controlled industry and support economic growth.

The banking regulatory commission also said it would look at ways to allow foreign banks greater access to China.

Regulators promised last year to allow privately financed banks as part of reforms aimed at making China's economy more productive. The state-owned banking industry lends mostly to government companies, and advocates of reform say it has to do more to support credit-starved entrepreneurs who create most of China's new jobs and wealth.

The regulatory agency gave no details about what areas of banking in which private institutions would be allowed to operate.