First Interbank Agreement for SWIFT TSU
The Bank of China and Bank of Tokyo Mitsubishi UFJ signed the first interbank agreement to use SWIFT’s Trade Services Utility (TSU).
The TSU provides a collaborative central matching utility for banks to provide services to their corporate customers beyond the settlement end of the transaction, including for financing, risk mitigation and associated value-added services. The two banks are using it to service both Chinese and Japanese customers and signed the agreement with the aim of using the TSU for more customers.
“Payment service and collection with the TSU lets us offer trade settlement to our corporate customers that is faster, less burdensome in terms of document preparation, saves cost and is more compliant to local regulations,” said Takeo Sato, general manager, trade business division of Bank of Tokyo Mitsubishi UFJ.
“The interbank agreement not only clarifies the business rules and working models for using the TSU between the two banks, but also builds solid fundamental for the TSU commercialisation,” said to Cheng Jun, Director, corporate banking unit (global trade services), Bank of China, “and it’s critical to the innovation and promotion of the TSU business in China and over the world.”