Lloyds of the UK has announced a strategic partnership with Standard Chartered in Asia to help it support corporate clients who import from the region.

The deal will allow Lloyds to directly issue import letters of credit (L/Cs) for purchases from key Asian markets.

New arrangement

The arrangement between the two banks aims to help Lloyds' UK-based customers' trading relationships with Asia.

It covers 20 Asian markets, including China, India and South Korea, using Standard Chartered's local representation and expertise.

Rationale

According to the head of transaction banking at Lloyds Bank Commercial Banking, Andrew England, the UK-based bank made the deal because it does not have an extensive network in Asia.

Thus, Lloyds has joined up with Standard Chartered because the latter has a strong brand and local representation in many of the countries.

Benefits

Lloyds expects the benefits to customers to include speedier transactions for its customers, according to England.

He also anticipates that some exporters will want to discount L/Cs or have them reimbursed, and Standard Chartered will be in a position to respond to that exporter need.

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