China Minsheng Bank, the mainland's sole private financial institution, has announced that it is now able to send funds directly to Taiwanese banks, bypassing the traditional route through a third port.
A bank spokeswoman yesterday said it had clinched agreements with more than 10 Taiwanese financial institutions for direct remittance businesses.
The move came after Beijing allowed direct fund transfers between banks across the Taiwan Strait, she said.
'It will enhance our service coverage and competitiveness as other domestic banks are offering their clients similar services,' she said.
Earlier this month, the mainland's largest commercial financial institution, Industrial and Commercial Bank of China, said it had agreements in place with more than 20 Taiwanese banks and another dozen foreign banks with branches in Taiwan for direct remittance business.
Banking funds had previously been prevented from flowing directly between Taiwan and the mainland.
Instead, banks would remit funds through a third port, usually Hong Kong or the United States.