The pilot program of allowing commercial banks to set up fund management companies will be expanded, the China Banking Regulatory Commission said on Monday.

According to the announcement, the CBRC has agreed that city commercial banks will join the program.

Industrial Bank Co Ltd and Bank Of Beijing have received approval to join the program, the CBRC said.

"We will focus on improving the asset management ability and business development capability to boost the development transformation of commercial banks," said Shang Fulin, chairman of the CBRC.

The pilot program was started in 2005, and the Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications were the first banks to join.

The program expanded in 2007 for the first time. Since then, the total fund asset management has reached almost 500 billion yuan ($80.3 billion), CBRC said.