China Banking Regulatory Commission (CBRC) has given the go-ahead to two companies to set up private banks in the country.

These include Chinese retailer Suning Commerce Group, which received approval to set up its bank in Nanjing, capital of Jiangsu.

Suning will own a 30% stake in the new Jiangsu Suning Bank, while Solareast will hold a 23.6% stake. The new bank will have a registered capital of RMB4bn ($576m).

The other new private bank will be set up in Beijing. Yonyou Network Technology will be the largest shareholder in the new Zhongguancun Bank, with a 29.8% stake.

The two banks will offer financial services, mainly to individual clients as well as micro, small and medium-sized enterprises.