BEIJING — China is likely to see a boom in its private banking sector amid increasing policy support.

Related government agencies are developing policies to facilitate private banks' healthy growth, according to a report released on Aug 19 by the Economic Information Daily.

China gave the green light for private banks in 2014, but the growth of private banks stayed flat in 2017 and 2018 amid the country's financial deleveraging campaign. There are 17 private banks across the country at present.

The 18th private bank is soon to be established, as the country's banking regulator gave the go-ahead to a bank in East China's Jiangxi province in May.

A bank in central Henan province is seeking to get the approval by the end of this year, while banks in regions like Shanxi are working on preparation, the report said.

China will reform and improve the structure of the financial system and develop private and community banks to better serve the real economy, according to a government work report issued in March.

Only one of the 17 private banks is operating in the red. But most of them have reported limited capital supplementary tools, high debt costs and lack of proper corporate governance, according to the newspaper.

The China Banking and Insurance Regulatory Commission said earlier this year that enhanced regulatory measures will be taken to monitor private banks' balance sheets and business operations to ensure they grow on an orderly track.