Chinese regulators are working on policies to allow private capital into banking, according to banking regulatory officials' comments reported by the Shanghai Securities news.
The most optimistic forecasts are for the first licenses for private banks to be handed out in the first quarter next year.
A separate report from the China Securities Journal says the relevant policies may be issued next month.
So far, China only has one private held bank, Minsheng Bank. Experts say the deposit insurance scheme is needed to nurture private banks.