TAIPAI: Taiwanese banks plan to open branches in China after the island signed three financial memoranda of understanding with the mainland.

Seven local banks that currently have representative offices in China will apply to the authorities to upgrade them to branch status after the agreements take effect in January, the Commercial Times said. They include government-invested Taiwan Cooperative Bank, Hua Nan Commercial Bank and Chang Hwa Bank, it said.

The report also quoted unnamed banks as saying that they will expand staffing in China, forming partnerships with mainland banks to lower mutual borrowing costs.