OCBC Bank inks agreement with Bank of Shanghai to capture Belt and Road opportunities

OCBC Bank has signed a Memorandum of Understanding (MOU) with Bank of Shanghai to help companies expand across countries covered by China's Belt and Road Initiative - which calls for massive development of infrastructure along key trade routes.

This is part of efforts to strengthen OCBC's position as a key partner for Chinese enterprises expanding into South-east Asia, the local lender said in a statement on Monday.

Apart from sharing knowledge and resources, exploring joint business and talent development opportunities, and strengthening risk management capabilities, the banks will collaborate closely to provide clients with trade finance, corporate banking, treasury and investment banking solutions tailored to their cross-border needs.

The partnership offers Bank of Shanghai's corporate clients "access to OCBC's comprehensive suite of funding and risk management solutions, deep experience in South-east Asia and extensive network".

At the same event, Bank of Shanghai inked a separate MOU with Spanish lender Banco Santander to support Chinese businesses venturing into Europe under the Belt and Road Initiative.

"South-east Asia, which is along the 21st century Maritime Silk Road, is a strategic economic corridor at the heart of China's Belt and Road Initiative. It is attractive to the many Chinese corporates looking to expand overseas, not least because it is also home to a large diaspora of ethnic Chinese who share the same culture, values and ancestry," said OCBC Bank's group chief executive Samuel Tsien.

"The collective strength of Bank of Shanghai, Banco Santander and OCBC, especially our combined networks and franchises, can effectively attract and engage Chinese enterprises that are both "Going Out" and "Coming In"."

This is the second time OCBC is signing an MOU with Bank of Shanghai. The first MOU was signed in April 2017 when the banks agreed to cooperate across a range of business areas, including trade finance, corporate and investment banking, treasury, settlement, loans and cross-border financing to support the in-market and cross-border needs of each other's customers.