China’s State Administration for Industry and Commerce has approved the formation of 36 private banks writes Patrick Brusnahan.

PBI reported on Monday that since the Communist Party of China’s Third Plenum there has been a trend of privately owned companies rushing to apply for banking status in China. An example is Suning Commerce Group Co Ltd., a leading home appliance retailer, hoping to launch their own privately owned bank, Suning Bank. Now it has been confirmed that 36 separate private banks have gained approval from the State.

The sudden appearance of private banking is predicted to not hugely affect the current financial system, but many have been warned that regulation and inspection of the private banks will, most likely, be stringent.