The bank’s plans for expansion follows Industrial and Commercial Bank of China’s (ICBC) acquisition of a majority stake in Tekstilbank early this year.
Following this stake acquisition, ICBC has become the first Chinese bank to have operations in Turkey.
On Thursday, officials of the Turkey’s Banking Regulation and Supervision Agency met executives of Bank of China to iron out the legalities of the plan.
Said to be the fourth biggest commercial bank in China, Bank of China’s investment details into the new venture have not been disclosed.
However, Ankara requires a minimum of $300m in registered capital for an overseas bank to operate in the country.
The Anadolu Agency quoted a source familiar with the matter as saying: "The Chinese bank will apply to obtain a license in the forthcoming days and will start to operate next year in Turkey."
Several investors from across Japan and China have been considering plans to invest in Turkey, which is said to have a well-regulated banking system.
The investors expect higher rates of return in Turkey than in other developed markets.
Earlier in July this year, Bank of China (BOC) Hong Kong (HK), a subsidiary of BOC, announced plans to sell its Nanyang Commercial Bank (NCB) for HK$68bn ($8.8bn).
BOC planned to sell NCB to streamline operations by removing competition on the mainland.
