The China Banking Regulatory Commission has revoked the private fund-manager licenses of 17 commercial banks, over what sources said were legal concerns.

A person close to the CBRC said on Wednesday the specific reason could be that they had violated certain conditions under the Law on Commercial Banks, which does not allow lenders to operate integrated securities investment operations.

Instead, they have to set up subsidiary companies to engage in the business, but only after undergoing close government examination and approval.