OCBC Bank is partnering 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.
The two banks signed a memorandum of understanding (MOU) yesterday - a move that OCBC believes will strengthen its position as a key partner for Chinese enterprises expanding in the region.
Bank of Shanghai does not have a presence in South-east Asia. This means "OCBC Bank is now poised to be its strategic choice for collaboration in the market", the bank said in a statement.
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.
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.
This is the second time OCBC is signing an MOU with Bank of Shanghai. The first MOU was signed in April last year when the banks agreed to cooperate across a range of business areas, including trade finance, and corporate and investment banking.