China's banking regulator announced on Friday that it will allow non-banking financial institutions to offer custody services for securities investment funds in June.

Starting June 1, Chinese non-bank financial intermediaries whose net assets exceeded 2 billion yuan ($319 million) as of the end of each fiscal year for the last three years can apply to the China Securities Regulatory Commission for the license, according to a CSRC statement.

The CSRC requires applicants to have an independent fund custody department with a well-designed security monitoring system and a business operating system. It has also laid down qualification requirements for team personnel.

The CSRC believes the new regulations will promote market competition in the fund custody sector.

The CSRC also announced on Friday a set of rules to regulate Chinese securities companies in the areas of asset securitization and the operation of affiliated agencies.