CIMB Bank Completes Malaysia's First Cross-border Bank Payment Obligation

KUALA LUMPUR, July 13 (Bernama) -- CIMB Bank today announced that it has completed Malaysia's first live Bank Payment Obligation (BPO) transaction with receivables financing. This also marks the first cross-border collaboration involving inter-bank BPO between CIMB Bank and China CITIC Bank. With the completion of this maiden BPO transaction, CIMB Bank has become the 11th banking group worldwide to have done a BPO transaction.

Introduced by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the International Chamber of Commerce (ICC) back in 2013, BPO is an undertaking of a buyer's bank to pay a seller's bank upon successful data matching on the SWIFT's unified electronic platform. It is a trade transformer that combines the best of both Letter of Credit and Open Account Trade in terms of risk mitigation and flexibility in facilitating international trade. In addition to leading the first BPO in Malaysia, CIMB Bank is also proud to offer post-shipment financing for BPO transaction in helping customers to unlock trapped cash and generate liquidity to fuel business growth.

For the full text, click here.

We provide (subscription-based) 
news coverage in our
Newswire service.