Taiwan's banking regulator has issued licenses to two mainland Chinese banks that will provide letter of credit (L/Cs) and other banking services on the island.

The licenses were issued earlier this month to Bank of China Ltd and Bank of Communications.

License terms

The licenses will allow the two Chinese banks to issue L/Cs, take deposits, make loans and engage in foreign-exchange activities.

The banks will also be able to invest in Taiwanese local government and corporate bonds, Taiwan's Financial Supervisory Commission said in a statement.

Growing presence

Both Chinese banks last year upgraded their representative offices in Taiwan to branches.

They were not allowed to commence operations until they had been granted licenses.

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