Chinese joint-stock commercial banks will be allowed to establish branches in counties, sources with the China Banking Regulatory Commission said on Friday.

Up until now the field of operation of these banks has been restricted to cities.

The permission will enable joint-stock commercial banks to roll out banking services for county economies, and help small firms, the sources said.

In providing banking institutions with better market access, the move aims to narrow the regional divide in the financial industry.

The sources added that the policy will also apply to city commercial banks.

There are now 100 city commercial banks and 13 joint-stock commercial banks in China. Several of the 13 joint-stock commercial banks, including Industrial Bank, Shanghai Pudong Development Bank, Shenzhen Development Bank, China Everbright Bank and Minsheng Banking Corp., have gone public.