The Bank of China (BOC), the country's largest foreign exchange lender, said it had already completed the preparatory work for establishing its Taiwan branch, according to a statement on the bank's website.

The bank will submit the application documents as soon as detailed regulations regarding a financial cooperation agreement between the mainland and Taiwan come out, said BOC spokeswoman Zhao Rong on Friday.

A memorandum of understanding (MOU) signed by the financial regulatory authorities of mainland and Taiwan last November will take effect on Saturday, paving the way for financial cooperation between banks on both sides of the Taiwan Strait, she added.

BOC hopes to be in the first batch of mainland lenders to operate in Taiwan. Its new branch will probably be located in Xinyi District, Taipei. with an initial management team of 20 to 30 staff, said the statement.