National Bank of Fujairah (NBF) has announced the signing of a memorandum of understanding (MoU) with Wells Fargo Bank that would see NBF gaining a foothold in Hong Kong.

The establishment of an NBF presence in Hong Kong would enable faster letter of credit (L/C) processing and would potentially boost trade flows between the Middle East and Asia.

L/C re-issuance

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

This should reduce turnaround time for payment processing while providing customers quicker access to goods and documents.

First overseas outpost

The MoU, which remains subject to regulatory approval, would utilise Wells Fargo's Hong King infrastructure and lays the foundations for the establishment of NBF's first foreign subsidiary.

The two banks signed the MoU on the sidelines of the recent International Monetary Fund - World Bank meetings in Tokyo.

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