A Chinese mainland official hailed the recent moves to allow mainland and Taiwan banks to establish branches and representative offices on the other's side in a press conference Wednesday.

Fan Liqing, spokeswoman of Taiwan Affairs Office of the State Council, said the moves mark significant progress in cooperation between both sides in the banking industry.

The Taiwan authority allowed on Sept. 23 two mainland banks, Bank of Communications (BOCOM), and Bank of China (BOC) to set up representative offices in Taiwan.

Earlier, the Chinese mainland approved, on Sept. 16, four Taiwanese banks to upgrade their mainland representative offices to branches, including Land Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank.

Fan said these banks could start business upon passing the examination of the mainland banking regulatory authority.

In June, the Chinese mainland and Taiwan signed a landmark free trade deal, the Economic Cooperation Framework Agreement (ECFA), slashing tariffs on the island's exports and laying the foundation for banks on both sides to invest across the Strait.