The nation's banking regulator has proposed the establishment of new consumer finance companies specializing in consumer loans as part of the government efforts to boost domestic consumption.

China Banking Regulatory Commission (CBRC) has recommended the idea to the government and proposed pilot projects in the major cities such as Beijing and Shanghai, according to a report in Guangzhou Daily. These companies would not be allowed to accept deposits.

The proposed finance companies are expected to provide unsecured loans to individuals for the purchase of consumer durables such as refrigerators and air-conditioners, and expenses on education, tourism and wedding ceremonies.