Three consumer finance companies get green light

SHANGHAI: The banking regulator has approved three banks' plans to set up consumer financing companies, as part of the government's efforts to boost domestic consumption.

Bank of China (BOC), Bank of Beijing and Bank of Chengdu are the lenders who would set up the three consumer finance firms.

Under a pilot program, these banks would be allowed to offer personal loans for travel, education and purchases of durables. However, personal loans cannot be used for buying property or cars.