Monday, 28 October 2024
BNY and Mizuho Bank announce landmark trade services collaboration agreement
The Bank of New York Mellon Corporation (BNY), a global financial services company, and Mizuho Bank, the banking arm of Mizuho Financial Group, and one of the largest full-service financial institutions in the world, jointly announced a landmark agreement for correspondent bank network connectivity for international trade.
In this increasingly complex global environment, banks are experiencing rising costs and complexity due to increasing regulatory demands of know-your-customer (KYC) and compliance requirements. With banks operating a limited trade relationship network, cross-border trade opportunities with new counter-party banks are restricted.
A market-first, this agreement offers expanded connectivity for clients leveraging both institutions’ expanded trade network. It underscores both BNY and Mizuho Bank’s deep commitment to drive innovation and work towards digitalisation of trade.
Through this agreement, both banks are able to enhance their services to clients through frictionless access to each other’s expansive trade network. Powered by BNY’s Trade Network Access Service, the correspondent banks’ end clients can expect streamlined trade services and simplified compliance processes. This empowers them to trade more effectively and expand in new markets. The non-competing alliance between BNY and Mizuho Bank offers enhanced solutions to corporate clients in Asia without significant investments by either institution in trade infrastructure.
Tsutomu Yamamoto, managing executive officer, and head of global transaction banking unit at Mizuho Bank said, “As we continue to see dislocations of global supply chains, our clients continue to desire to expand cross-border trade opportunities. This landmark collaboration with BNY will help our clients capture new trade opportunities while managing risks, contributing to global trade growth in the long run.” He added, “This is a natural alliance between two leading financial institutions that brings together complementary strengths and client segments.”
Jennifer Barker, global head of treasury services and depositary receipts at BNY said, “Cross-border trade is essential to economic growth, and trade finance solutions provided by banks have proven to be vital in helping companies do business and manage risks. With connectivity to over 4000 bank branches globally to facilitate cross-border trade, we are proud to work with Mizuho Bank to enhance international trade network access offering, supporting our clients to scale their businesses.”
Re-disseminated by The Asian Banker
