JP Morgan launches US dollar clearing
(17 May 2010 – Asia) JP Morgan has been selected by PT Bank Mega Tbk, one of Indonesia’s leading financial institutions, to provide clearing services for both its commercial and treasury payment flows with JP Morgan’s U.S. Dollar Clearing, Asia Direct solution and payment-versus-payment (PvP) settlement services for foreign exchange transactions.
JP Morgan’s U.S. Dollar Clearing, Asia Direct solution, Bank Mega’s is designed to make faster payments to beneficiaries in Mainland China and Hong Kong.
The investment bank has claimed that the new initiative is the first and only payment solution to provide direct access to multiple regional and in-country U.S. Dollar clearing systems in Mainland China, Hong Kong, Japan and Taiwan from a single U.S. Dollar account.
JP Morgan’s Asia Direct clients are not required to establish separate accounts in each country of clearing, resulting in better cash concentration, lower fees, simplified funding arrangements and decreased time spent on reconciliation activities.
The solution is also designed to help Bank Mega’s clients to grow their business through improved relationships with their counterparties.
Bank Mega has also selected JP Morgan’s payment-versus-payment settlement services for its foreign exchange transactions in Indonesia.
The new clearing service provides simultaneous delivery of Indonesian Rupiah and U.S. Dollar currencies within the same Asia business day, thereby enabling Bank Mega to mitigate foreign exchange settlement risk, improve its liquidity management and increase its operational efficiency.
Mr Kendarto, president director of Bank Mega said they are pleased to be working with JP Morgan to provide clients with access to innovative value-added services such as JP Morgan’s U.S. Dollar Clearing, Asia Direct service.
JP Morgan’s leadership position in U.S. Dollar clearing was also a key factor the decision to use the bank’s Asia Direct and PvP settlement solutions, Mr Kendarto added.
Simon Jones, managing director and Asia Pacific regional Treasury Services executive at JP Morgan said that Indonesian banks have been rapidly adopting the latest standards of payment services. Being chosen by Bank Mega to provide both commercial and treasury payments services demonstrates the strength of the investment bank’s world-class cash management service offering.
JP Morgan also said that they invest heavily in maintaining and growing relationships with clients and look forward to further expanding the relationship with Bank Mega.
The investment bank has claimed that the new initiative is the first and only payment solution to provide direct access to multiple regional and in-country U.S. Dollar clearing systems in Mainland China, Hong Kong, Japan and Taiwan from a single U.S. Dollar account.
JP Morgan’s Asia Direct clients are not required to establish separate accounts in each country of clearing, resulting in better cash concentration, lower fees, simplified funding arrangements and decreased time spent on reconciliation activities.
The solution is also designed to help Bank Mega’s clients to grow their business through improved relationships with their counterparties.
Bank Mega has also selected JP Morgan’s payment-versus-payment settlement services for its foreign exchange transactions in Indonesia.
The new clearing service provides simultaneous delivery of Indonesian Rupiah and U.S. Dollar currencies within the same Asia business day, thereby enabling Bank Mega to mitigate foreign exchange settlement risk, improve its liquidity management and increase its operational efficiency.
Mr Kendarto, president director of Bank Mega said they are pleased to be working with JP Morgan to provide clients with access to innovative value-added services such as JP Morgan’s U.S. Dollar Clearing, Asia Direct service.
JP Morgan’s leadership position in U.S. Dollar clearing was also a key factor the decision to use the bank’s Asia Direct and PvP settlement solutions, Mr Kendarto added.
Simon Jones, managing director and Asia Pacific regional Treasury Services executive at JP Morgan said that Indonesian banks have been rapidly adopting the latest standards of payment services. Being chosen by Bank Mega to provide both commercial and treasury payments services demonstrates the strength of the investment bank’s world-class cash management service offering.
JP Morgan also said that they invest heavily in maintaining and growing relationships with clients and look forward to further expanding the relationship with Bank Mega.
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