Australia and New Zealand Banking Group (ASX:ANZ) announced today it would commence lending and banking operations in China on October 1 after its wholly owned subsidiary Australia and New Zealand Bank (China) Company Ltd received regulatory approval.

The China Banking Regulatory Commission (CBRC) granted final regulatory approval for the establishment of ANZ China earlier this month, ANZ said on Tuesday.

ANZ China will be a locally incorporated entity, allowing it to apply for a Renminbi (RMB) licence to support domestic retail and business clients in China, plus provide a range of foreign currency and RMB banking services for ANZ's institutional and network clients.

It will be subject to independent governance by a local Board chaired by Gilles Planté, Australia and NewZealand Banking Group CEO North East Asia, Europe and America.

As part of local incorporation, ANZ Group has made an initial investment of RMB2.5 Billion (AUD400 million) in ANZ China, which will enable the acceleration of plans to establish up to 20 outlets in the Asian superpower in the next three years.

Mr Plante said, "Local incorporation provides the foundation for ANZ to expand our presence, products and capabilities for customers in China."

"It significantly enhances our ability to grow organically and creates greater opportunities for co-operation with our strategic partners in Shanghai and Tianjin," he said