Related provincial departments are in charge of designing and discussing plans for privately owned banks for further approval by the China Banking Regulatory Commission, Shanghai Securities News reported on Wednesday.

At the moment, most of the provincial governments are still working on proposals from the privately owned banks.

More than 10 enterprises have already obtained the pre-approved registration of business names, which is still far from getting business licenses.

In addition, the local governments probably won't open the market totally for privately owned banks for financial services.

Reliable insiders told Shanghai Securities News that privately-owned banks in a province in East China won't be allowed to get more than 500,000 yuan ($82,000) deposit savings to minimize the risks and protect ordinary depositors.

Experts said that the restriction would probably see privately owned banks call off their plans.