Bank of Jiangsu, created in a drive to enhance competitiveness through mergers, is set to open later this month.

After years of discussion and preparation, the bank finally gained approval from the banking regulator in East China's Jiangsu Province at the end of last year. It will open with a registered capital of 7.85 billion yuan. Formed by the merger of 10 small city commercial banks in Jiangsu, the bank is set to go public and will invite foreign strategic investors to take shares.

The consolidation is seen as a step by small city commercial banks to get more capital and market share as they face increasing competition from both domestic and foreign rivals following the full opening of the financial sector.

According to the local regulator, the new bank, which reportedly planned to open for business late last year, cleared a total of 2.54 billion yuan in bad assets during the merger and raised 3.5 billion yuan by issuing more shares.

The bank will keep its non-performing loan ratio at 3 percent against the current national average of 8 percent, with a capital adequacy ratio of more than 12 percent. Under a board of 13 members, the bank has set up five specific commissions to take charge of affairs including strategic development and auditing.