China Development Bank (CDB), the country's largest policy lender, has secured approval from the government for its plan to transform itself into a full-fledged commercial bank, sources said.

The sources, who preferred not to be named, confirmed a report by China Securities Journal that the State Council, the cabinet, has finished the review of CDB's reform plan and approved the proposal.

With the restructuring, CDB will shift to all-round business activities, including retail banking, although its advantage is likely to remain in financing big-ticket development projects, according to Yuan Lin, an analyst with BOC International Securities.