OREANDA-NEWS. Seven companies in East China's Anhui province are planning to apply for permission to launch the province's first private bank, local media reported on Tuesday.

The move came after China Banking Regulatory Commission (CBRC) and the People's Bank of China issued a guideline on July 5 to invite private capital to the financial sector.

Responding to the Anhui Federation of Industry and Commerce' call, Guogou Group Co., Xin'an Financial Group Co.and five private enterprises agreed to found a bank, tentatively named "Bank of Hefei", Xin'an Evening News said, citing sources.

The bank will primarily target medium and small businesses. Its major services will include providing loans and direct financing to those companies plus funding technological innovation of the real economy, according to the report.