China's banking regulator approved Wednesday another two Taiwan banks to set up branches on the mainland.

The China Banking Regulatory Commission (CBRC) said in a statement on its website that it had approved Taiwan's Cathay United Bank to set up a branch in Shanghai, and Hua Nan Bank to open a branch in Shenzhen.

The commission also allowed Taiwan Business Bank to open a representative office in Shanghai.

The CBRC said it hoped it would have a benign influence on the banking industry between the Chinese mainland and Taiwan.

China approved four Taiwanese banks to upgrade their mainland representative offices to branches in September this year. Taiwan had allowed two mainland banks, Bank of Communications and Bank of China to set up representative offices in Taiwan.