China has approved the establishment of three private banks, including Webank by Internet giant Tencent, according to the state banking regulator on Friday.

Webank, located in the southern city of Shenzhen, will have two other main co-founders, Shenzhen Baiyeyuan Investment Co and Shenzhen Liye Group, said Shang Fulin, chairman of the China Banking Regulatory Commission at a work meeting.

The bank will mainly serve individual customers and small and micro-businesses, he said.

The other two banks are located in the eastern city of Wenzhou and the northern municipality of Tianjin.

Chint Group and Huafon Group are co-founders of the bank in Wenzhou, which targets local small and micro companies, individual businesses and residents, as well as clients in rural areas.

The bank in Tianjin, with Huabei Group and Maigou (Tianjin) Group as co-founders, will mainly engage in corporate banking services, the chairman said.