China CITIC Bank has secured green light from the Chinese banking regulator to set up a wealth management unit.

According to local news agency Xinhua, the China Banking and Insurance Regulatory Commission (CBIRC) has approved China CITIC Bank’s application.

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The commercial lender will establish the wealth management unit with a registered capital of a maximum of CNY5bn ($711.2m).

Founded in 1987, China CITIC Bank is one of the largest lenders in China. It’s portfolio of services includes deposits, loans, domestic settlement, and currency trading.

Last year, CBIRC issued new guidelines for the commercial banks that seek to offer wealth management services.

The guidelines require commercial lenders to set up separate wealth management units. They can also include wealth management operations within the framework of other business units.

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In the recent years, there is reportedly a spike in efforts by local lenders to set up wealth management units. Last week, one of the key lenders in the country, Postal Savings Bank of China (PSBC) opened its wealth management unit.

It was the last among top six state-owned lenders to establish a dedicated wealth management unit. The unit will employ around 600 and 1,000 people.

Currently, its product portfolio includes fixed-income product-based investment plans and retirement offerings, among others.

Earlier in July, CBIRC granted permission to three lenders to open wealth management subsidiaries. The list included Bank of Hangzhou, Bank of Ningbo and Huishang Bank.