National Bank of Fujairah (NBF) has signed a Memorandum of Understanding (MoU) with Wells Fargo Bank with a view to the UAE-based bank establishing services in Hong Kong.

The bank is specifically looking at opportunities to use letter of credit (L/C) re-issuance services to boost trade between its customers in the UAE and their counterparties in Asia.

Outsourced trade processing

The MoU envisages an NBF non-banking subsidiary that utilises trade processing facilities provided by Wells Fargo.

NBF's subsidiary in Hong Kong would, subject to regulatory approval, offer L/C re-issuance services to Asian companies exporting to the bank's customers in the UAE.

Benefits

According to NBF's head of trade services, R S Rangan, the UAE-based bank wants to capitalise on growing economic ties between the UAE and Asia.

The bank expects its presence in Hong Kong to facilitate cross-border flows between the two regions.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.