NANJING — The first private bank in East China's Jiangsu province went into operation Friday.

Headquartered in Nanjing, Suning Bank gained approval from China's banking regulator in December 2016, and was co-sponsored by seven private companies with a combined registered capital of 4 billion yuan ($590 million).

The lender mainly provides financial support to small- and micro-sized firms.

In 2014, China approved a pilot scheme to set up five private banks to allow private capital to play a larger role in the country's financial system. The number of private banks that have received approval nationwide currently stands at 17, with 14 having already been put into operation.