Citibank's Loan Firms To Open in Hubei

Wednesday, 08 October, 2008

CITIBANK (China) Co said yesterday that it has received regulatory approval to establish two lending companies in Hubei Province, marking the first time an international bank has received permission from the China Banking Regulatory Commission to set up the lending company model.

Hubei Jingzhou Gong'an Citi Lending Co will open in Gong'an County, and Hubei Xianning Chibi Citi Lending Co will be set up in Chibi City. The two firms are likely to start operations within months in the two areas where credit demand is strong as they are experiencing robust economic growth and agricultural development.

"We are delighted to be granted approval to launch our lending companies which are an important new element in Citi expanding operations and investments in China," said Andrew Au, chairman of Citibank (China) and CEO of Citi China.

The new lending companies will offer secured and unsecured loans to the local population which has been stymied by a lack of suitable credit. The bank declined to give more details on the two new entities.

The banking authorities have reiterated the importance and necessity of providing credit to the rural sector, often ignored by bigger banks.

Citi is one of the major overseas lenders operating on the Chinese mainland, competing with rivals like HSBC and Standard Chartered.

Source: http://www.shanghaidaily.com