US bank gets Oz banking licence

Bank of New York Mellon has been granted an Australian banking licence by APRA.

The licence allows BNY Mellon to provide banking services to its institutional clients and will broaden its range of local and global capabilities it can offer in Australia. 

However, BNY Mellon does not intend to provide any retail banking services.

Recently, the bank formed a strategic alliance with Mortgage Settlements Australia which allows it to provide a variety of mortgage related services to lenders, such as loan documentation, settlements, discharges and arrears management.

It has also set up a document custody facility, which provides secure document storage.

Daniel McGrady, Country Executive for Australia, will continue to be located in Melbourne. 

The bank plans to expand its Melbourne and Sydney operations and increase its local employment in the future as it looks to build or acquire complementary local capabilities.

"This is an important step in enhancing our services for Australian clients and achieving our vision as one of the leading international financial services firms in Australia," said Christopher Sturdy, chairman of Asia Pacific at The Bank of New York Mellon.

"At a time when some international banks are scaling back their overseas investments, we are moving forward and increasing our presence in strong financial markets such as Australia. Receiving this branch licence will take us to the next level. We are very excited about our future plans here."