BNY Mellon of the US has signed a trade processing partnership with German commercial bank, Landesbank Hessen-Thürigen (Helaba) and the G25, a group that represents Germany's 25 largest savings banks.

Under the partnership, BNY Mellon stands to benefit from increased letter of credit (L/C) flows from German importers.

L/C deal

The US bank will essentially act as a business entry point in the Asia-Pacific region for German small- and medium-sized enterprises (SMEs) looking to trade initially in southeast Asia, India and China.

BNY Mellon will promote German SMEs' business in that part of the world. In return, Helaba and the savings banks will route L/Cs from German importers via the US bank's branch network.

Potential expansion

More German savings banks beyond the 25 largest may join the partnership in the future.

Helaba is expected to open a representative office in Singapore later this year.

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