Taiwan's Financial Supervisory Commission (FSC) indicated it would accept L/Cs and bank guarantees issued by mainland Chinese banks as collateral. The FSC says it wants to make L/Cs and bank guarantees acceptable as collateral so that Taiwanese banks can extend credit more easily to businesses in China in which there are Taiwanese investments. The move will help such businesses obtain credit at a time when China's credit policy is very tight. The move is also aimed at helping mainland Chinese branches of Taiwanese banks to expand their business. It could also allow Taiwanese banks to provide more loans to other Taiwanese and mainland Chinese banks.