Citibank (China) Co said Monday it has got regulatory nod to set up a lending company in Liaoning Province - its third on the Chinese mainland -as it taps demand for lending.
The United States-based bank is the first foreign bank to bring the model of a lending company to the mainland. Citi's third lending company will be located in Wafangdian near Dalian, a coastal city in the province. It has opened one in Hubei Province and another in Hubei will be opened in the first quarter, the bank said. But the bank didn't give a date when the Dalian company would open.
"Citi is committed to grow our business in China and we are delighted to be granted approval to establish a new lending company in Liaoning," said Andrew Au, chairman of Citibank (China) and chief executive of Citi China.
"We understand the importance of growing our business to less developed areas in China, and we believe that the lending company model we have introduced will contribute to the development of financial services in rural China," Au said.
A lending company doesn't take in deposits. Citi is setting up these companies in less developed areas as authorities have encouraged more credit for the rural areas.
(Shanghai Daily January 13, 2009)
