Former Temasek Holdings president Simon Israel has been appointed to the newly established Asia Advisory Board of Australia's Westpac Banking Corporation.

Mr Israel will be the board's second non-executive member, Westpac said in a press release on Tuesday.

He joins Mrs Lim Hwee Hua, Singapore's former Second Minister for Finance and Transport, who was appointed to the board soon after its establishment in November last year. The board's purpose is to advise the bank's management on its strategy in Asia.

Mr Israel was a board member of Temasek Holdings from 2005 and served as the investment agency's president between 2010 and 2011, before retiring in July 2011. Mr Israel was appointed chairman of SingTel in 2011.

Previously, he was Asia Pacific chairman of the Danone Group and also held various senior positions in Sara Lee Corporation including president of its household and personal care division in Asia Pacific.

"Mr Israel's appointment will add both strategic depth and critical insights to support the development of Westpac's Asia strategy as we look to deepen our capability in the region," said Mr Rob Whitfield, chief executive of Westpac Institutional Bank and chairman of its Asia Advisory Board.

Westpac also announced on Tuesday that it has received approval from the China Banking Regulatory Commission (CBRC) to set up a sub-branch in the Shanghai Free Trade Zone.