Bank of China is likely to officially open its branch in the China (Shanghai) Pilot Free Trade Zone on Sunday, a source told the 21st Century Business Herald newspaper.

As long as the banking regulatory authorities approve, and the central bank completes its examination, the branch will be able to start operations, the source said.

Director of the Bank of China Shanghai branch will preside over the FTZ branch.

So far, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, Shanghai Pudong Development Bank and Ping An Bank have applied to set up branches in the FTZ.

Shanghai Pudong Development Bank and Bank of China are the only two banks that have gained approval, so far, an industry insider said.

Mu Shi, deputy director of Shanghai Pudong Development Bank was quoted as saying that they will also open the branch on the same day the FTZ officially launches.

Only four banks have obtained offshore financial licenses in China; Bank of Communications, China Merchants Bank, Shanghai Pudong Development Bank and Ping An Bank.