China's banking regulator has approved the establishment of a regional bank in the Tibet autonomous region to strengthen financial support and speed up economic development.

The China Banking Regulatory Commission (CBRC) said on its website on Sunday that the regional bank will have an initial capital of about 1.5 billion yuan and will be the first regional corporate and commercial lender to operate in the region.

The bank, which will be registered in Lhasa, is funded by 15 institutions, including the regional government, local banking institutions and several Chinese enterprises, with Bank of Communications Ltd acting as a strategic investor, according to the CBRC.