Bank of China Ltd (BOC) and Industrial & Commercial Bank of China Ltd (ICBC) are vying to be the first of the mainland's lenders to open branches in Taiwan after the two sides agreed to widen access to each other's financial industries.

BOC, the mainland's third-largest lender, said yesterday it would apply to open a branch. ICBC, the world's most profitable bank, needs a presence in Taiwan and wants to expand there, Chairman Jiang Jian-qing said on Nov 13.

The accord deepens financial ties with an island that has accounted for as much as $200 billion of investment in the mainland and has 100,000 companies operating there. It also paves the way for a broader economic agreement as relations between the two sides reach their warmest since a civil war ended 60 years ago.