Bank of China (BOC), the nation's second largest state-owned commercial lender, launched a private banking service for millionaires only in Beijing and Shanghai Wednesday.

Only clients with financial assets exceeding one million U.S. dollars are eligible for the service that is being offered in conjunction with the Royal Bank of Scotland, which owns a 4.4 percent stake in the bank.

Yuan Kuntao, general manager of the UK-based bank's Asia-Pacific division, said the private banking service would be able to meet the customized needs of Chinese customers, adding that it was almost on a par with its overseas peers.

China was home to 320,000 millionaires in 2005, according to a report by Capgemini and Merrill Lynch.

Wang Lei, general manager of BOC's private banking division, said the service had huge room to grow as an increasing amount of rich customers are starting to think about financial assets management.