Wednesday, financial services giant Bank of New York Mellon Corp. (BK), said it was granted license by the Australian Prudential Regulation Authority, or APRA, to set up a banking branch in Australia with offices in Sydney and Melbourne. The New York-based bank has been operating in Australia for more than 30 years through a representative office.
According to the Bank, the license authorizes it to operate banking business as a Foreign Authorized Deposit-taking Institution under the Banking Act 1959. The company noted that it would provide banking services to institutional clients and also extend its range of local and global capabilities it can offer in Australia. Plans include expanding its Melbourne and Sydney operations and increasing its local employment in the future as it looks to build or acquire complementary local capabilities. The company also noted that it does not intend to provide any retail banking services.
Christopher Sturdy, Chairman of Asia Pacific, The Bank of New York Mellon said,"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 license will take us to the next level."
At present, The Bank of New York Mellon delivers a variety of asset management, payment, trustee, depositary receipt, clearing and global custody services to Australian banks, institutional investors, listed corporations and broker-dealers. The company currently has nearly 130 employees located in Sydney, Rosebery in New South Wales, and Melbourne.
BK is currently trading at $28.81, down $0.50 or 1.71%, on a volume of 1.48 million shares on the NYSE.
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