The company, Hubei Jingzhou Gong'an Citi Lending Co, is in Hubei Province and is the first to be set up in China by an international bank using the lending company model.
The company will focus on offering secured and unsecured loans to underserved segments of the population, and supporting economic development by making credit more accessible. The new lending company has a registered capital of 17 million yuan (US$2.5 million).
"We understand the importance of increasing the efficiency and availability of financial services in China's rural economy, and believe this lending company represents an excellent opportunity to utilize Citi China's global experience and expertise to contribute towards this effort," said Andrew Au, chairman of Citibank (China) Co and chief executive officer of Citi China. "China remains one of Citi's most important markets globally, and we will continue to grow in all areas of our business here over time."
Anand Selva, executive vice president of Citibank (China), said the bank looked forward to opening additional lending companies in future, and in doing so, Citi intended to ensure that Citi Credit became a sustainable and profitable element of Citi's overall operations in China.
Citi said it was expecting to open a second lending company in Chibi of Hubei in the first quarter of next year.
(Shanghai Daily December 17, 2008)
