BEIJING — China will tighten regulation of the growing private lending market.

Without official approval, no entities or individuals can set up institutions or platforms with lending as the primary business, according to a notice released on May 4 by the China Banking and Insurance Regulatory Commission.

The rapid growth of private lending has given rise to illegal financial activities including private lending based on illegal fund-raising, violent collection of overdue loans and offering usurious loans to students.

People working in the banking sector are banned from engaging in organized private lending as key participants or the actual controller, the notice added.