CEO Morning Brief

Citigroup's China Expansion Held Up by US Regulators — Bloomberg

edgeinvest
Publish date: Tue, 24 Sep 2024, 09:37 PM
TheEdge CEO Morning Brief

(Sept 23): Citigroup's expansion plan in China has hit a roadblock with US regulators after the Federal Reserve imposed a penalty on the bank for its data management and risk controls, Bloomberg News reported on Sunday.

The bank is facing delays in setting up a standalone securities firm because it hasn't yet received a clearance letter from the US Fed verifying its regulatory standing, which is required by Chinese authorities, Bloomberg said.

Citi was instructed to resolve its data management problems at home, after being hit with a combined US$136 million (RM570.8 million) in fines in July, the report said. The fines make it more difficult to meet China's licensing rules, it added.

The New York-based bank is continuing its discussions with China's securities regulator to set up the business, and has no plans to pull its application, Bloomberg reported, citing people familiar with the matter, adding that the situation is fluid and could change.

Citigroup declined to comment on its ongoing process to obtain a licence in China, saying the company remain committed to supporting its clients in the country.

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Source: TheEdge - 24 Sep 2024

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