Mizuho Bank and Bank of New York Mellon (BNY) and have jointly announced a landmark collaboration agreement for enhanced correspondent bank network connectivity for international trade.

The agreement may potentially boost the efficiency and reach of letter of credit (L/C) services, making it easier for businesses to secure financing and manage risks in international trade.

Streamlined trade services

This collaboration facilitates streamlined trade services and provides clients with easier access to global markets. By leveraging each other's vast networks, the two banks aim to simplify compliance processes and provide seamless connectivity for cross-border trade.

Both banks can offer expanded solutions, particularly for corporate clients looking to optimise their global trade finance activities without needing substantial new infrastructure investments​

Simplified compliance

Through this agreement, both banks aim to enhance their services to clients through frictionless access to each other's expansive trade network.

Powered by BNY's Trade Network Access Service, the correspondent banks' end clients can expect streamlined trade services and simplified compliance processes. This empowers them to trade more effectively and expand in new markets.

More efficient L/C handling

For L/C business, this enhanced connectivity could lead to more efficient handling of L/Cs, especially by improving access to global correspondent banks and reducing the complexity and cost of international trade operations.

The non-competing alliance between BNY and Mizuho Bank also offers enhanced solutions to corporate clients in Asia without significant investments by either institution in trade infrastructure.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.