BEIJING, Feb. 17 -- China's banking regulator announced Tuesday that it has approved two state-owned banks to open branches in southern Xinjiang to stimulate local development.

The China Banking Regulatory Commission (CBRC) has approved China Development Bank and the Export-Import Bank of China to set up secondary branches in Kashgar.

Establishing bank branches in southern Xinjiang will benefit infrastructure construction in the area and promote economic development and social stability, said the CBRC.

The CBRC promised to pump more financial support to southern Xinjiang, implement more favorable monetary policies and strengthen supervision and risk control.

Last week, the People's Bank of China and three state commissions in charge of banking, securities and insurance sectors jointly released a guideline to increase policy support to southern Xinjiang.