BNY Mellon has signed a trade processing partnership with Helaba (Landesbank Hessen-Thürigen) and the G25, a group which represents the 25 largest Sparkassen in Germany.
BNY Mellon will act as a business entry point for small- and medium-sized German enterprises seeking to trade with the Asia-Pacific region (APAC). The bank will promote the partners’ brands in APAC via its correspondent banking network, and in return, Helaba and the Sparkassen will route letters of credit from German importers via BNY Mellon’s branch network.
“This agreement strengthens Helaba’s position as a trade finance partner,” said Klaus-Jörg Mulfinger, designated management board member of Helaba, who is also responsible for business conducted with the Sparkassen. “With export flows on the rise, the Sparkassen need to provide adequate trade finance support to their corporate clients. Helaba is committed to helping the Sparkassen meet these client needs by providing an extensive array of trade finance products, buyer credit and forfaiting, and the assumption of bank and country risk.”
osef Hastrich, deputy chief executive officer at Kreissparkasse Köln noted that the agreement should offer new opportunities for the German Sparkassen Finanzgruppe to expand globally and should significantly complement the global performance of the Landesbanken. “We’d also welcome other Sparkassen who would like to participate in the partnership,” he said. “The German Sparkassen are the most important partners for the Mittelstand in Germany and we are looking forward to extending this partnership to the international trade finance business.”
Ian Stewart, chief executive officer, treasury services at BNY Mellon, added that the deal will help connect the Mittelstand with the fastest growing region in the world. “We will provide a common solution for Helaba and Germany’s Sparkassen, which will give them access to our network of correspondent banks in APAC,” he said. “Helaba and the Sparkassen will be able to leverage our strong brand presence in Asia where we have been based for over half a century. This, in turn, will help German companies drive export growth into new and exciting markets.”
The German Sparkassen and Landesbanken are one of the largest banking groups in the world and have over 15,000 branch offices throughout Germany. BNY Mellon already delivers a range of solutions to Germany’s Sparkassen and has acted as one of their partner banks for nearly 50 years.
The architecture of financial markets has changed and we will soon see the end of the last eight years of prosperity, said Stefan Bielmeier, chief economist and head of research at DZ Bank.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.