CIMB Thai Bank has selected J.P. Morgan as its Continuous Linked Settlement (CLS) third-party service provider in Thailand. This is the US institution’s first CLS client win in the country. According to J.P. Morgan, its services will significantly reduce CIMB Thai Bank’s foreign exchange settlement risk and help make its payment-versus-payment settlement more efficient.
“With J.P. Morgan’s CLS service we have been able to significantly reduce our settlement risk and enhance the services we offer to our clients while at the same time reducing out costs by minimising the number of failed settlements and other post-settlement complications,” said David Wee, senior executive vice-president and head of group information and operations division at CIMB Thai Bank.
This partnership is an extension of an existing relationship between both banks established last year which has J.P. Morgan providing clearing facilities for CIMB’s operations in Indonesia, Malaysia and Singapore. This latest deal also follows J.P. Morgan winning of a mandate from Pakistan’s Bank Alfalah to provide cash management and treasury services.
“This broader relationship with CIMB is testament to our success in delivering to our clients solutions which build their business, reduce their cost and mitigate their risk,” said Abdul Raof Latiff, head of treasury services for Asean at J.P. Morgan. “As an existing and rapidly emerging market, Thailand clearly represents an important element of J.P. Morgan’s international growth strategy across the region.”
CIMB Thai Bank offers financial products and services to corporate, small and medium-size enterprises and retail clients through 155 branches in the country. It is a member of the CIMB Group which is headquartered in Kuala Lumpur, Malaysia. The group employs more than 38,000 staff in 14 countries.
