Customers of National Bank of Fujairah (NBF) importing from Asia look set to benefit from a new agreement reached by the bank and trade specialist Wells Fargo.

Under the agreement, letters of credit (L/Cs) for trade with China will become more easily available to NBF customers.

Non-banking subsidiary

The UAE-based bank says it has established NBF Trade Services, in conjunction with Wells Fargo.

Based in Hong Kong, it will be a non-banking subsidiary that will utilise Wells Fargo's trade processing capabilities.

L/C reissuance

NBF Trade Services will facilitate the reissuance of import L/Cs to beneficiaries in Asia.

This aims to provide NBF customers with easier access to their trading partners in Asia and reduce turnaround time for payments, documentation and the delivery of goods.

Cross-border flows

NBF's chief executive, Vince Cook, said the bank wants the subsidiary to tap into expanding cross-border trade flows between the UAE and China.

Trade between China and the UAE has increased tenfold over the past decade to reach US$15.6 billion in 2012, according to figures from Standard Chartered.

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