China to approve up to 5 new banks in 2014

China will approve the establishment of three to five private banks on a trial basis this year, the country's top industry regulator said on Monday.

A news release from the China Banking Regulatory Commission said it will broaden the access of private capital to the banking industry.

The quality of private bank initiators must be strictly reviewed, it said.

Further opening up the banking industry will be a top priority for the supervision of the industry this year, according to the commission's work plan for 2014.

"The commission will gradually lower the threshold for both domestic and overseas banks, the quality to conduct transaction in renminbi, and expand the channels for private capital to enter the banking industry," it said.

Three to five private banks will be approved as pilot programs in the beginning of 2014.

The CBRC reiterated the importance of guarding against financial risks.

It pledged to take prudent approaches to ease up the risks of loan platforms and exert stringent control over real estate loans.