The Factor Chain International (FCI), in its recent Executive Committee meeting, has approved Mutual Trust Bank Limited (MTB) as an “Associate Member”. With this approval, MTB has become the first Bangladeshi Bank with the credential of “associate membership” under the FCI umbrella.
Peter MULROY, the Secretary General of Factor Chain International (FCI), from its Head Quarter at The Netherlands, sent a letter to MTB, stating that “I have great pleasure in officially welcoming Mutual Trust Bank Limited to the FCI network. I am confident that MTB will contribute to the growth of international factoring under the FCI umbrella”.
FCI is the Global Representative Body for Factoring and Financing of Open Account Domestic and International Trade Receivables. Established in 1968 as a non-profit global association, FCI is currently an association of around 400 member companies with the coverage of more than 90 countries, FCI offers a unique network for cooperation in cross-border factoring. Member transactions represent nearly 60% of the world’s international correspondent factoring volume.
With the ever increasing demand for export under open account terms and enabling to meet that demand for financing it, Bangladesh Bank has recently issued a game changing circular. This circular has permitted banks to facilitate export on an open account basis with proper risk mitigation.
With this membership, MTB will have access to more than 400 members in 90 countries under the FCI umbrella, can act as an “export factor” under the two factor chain model and get the advantage of their uniform rules and unique system or platform.
Syed Mahbubur Rahman, Managing Director & CEO of MTB expressed his reaction to the news that “I am really happy to have the news, which will excel our dream to become one of the best innovative trade finance solution providers for our clients in the country”.