Citi Global Transaction Services (GTS) today announced the launch of an industry initiative  – The Multi-Bank Global Trade Program. Leveraging its global footprint, this initiative affords Citi an opportunity to address market challenges in partnership with other Trade banks while garnering benefits for clients.

The Multi-Bank Global Trade Program,  pioneered by Citi, seeks to establish an origination and funding platform for Trade banks with complementary market positions, thereby creating a diversified, granular pool of funded Trade assets. With this collaboration, participating banks would realize the benefits of asset de-recognition, credit relief and lower funding costs, which are difficult to achieve through a stand-alone market execution.

Emmeline Wexer, Global Head of  Trade Asset Advisory,  Citi GTS said “Each bank may rationalize its participation differently, such as a greater need for capital relief vs. funding and liquidity. However, collaboration among the participating banks, sharing a common goal of creating the most efficient funding platform to support the financing of global trade flows, is ultimately the most important ingredient to achieve success”

John Ahearn, Global Head of Trade, Citi GTS said, “This Multi-Bank Global Trade Program is another way that Citi is supporting the Global Trade market and providing ways Trade banks can grow their trade finance portfolio in an efficient and effective way.”

Global Transaction Services (GTS), a division of Citigroup’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citigroup’s GTS supports over 65,000 clients. As of the third quarter of 2010, it held on average $340 billion in liability balances and $12.4 trillion in assets under custody.