SHANGHAI: The China unit of Citigroup Inc said on Monday it has received regulatory approval to issue credit cards in China becoming the first non-Asian bank to be allowed to run such business.
Citi, which has branches in 13 cities in China, said it will likely launch the credit card business this year.
"This approval represents a significant milestone in the continued expansion of Citi's business in China, a priority market for Citi," Stephen Bird, chief executive officer, Citi Asia Pacific, said in a statement.
"Our business in China continues to perform strongly across both institutional and consumer lines, and our ability to introduce a credit and commercial card proposition adds to our healthy growth momentum in this key market."
About 40 foreign banks have set up locally incorporated units in China, which allows them to carry out yuan-related business, since 2007 when the first batch of banks were approved.
However, their growth has been slow, making up only about 2 percent of the current total market share, partly because of reluctance among Chinese consumers to bank with a foreign name but also because of the tight regulatory environment.
Currently, the China unit of Hong-Kong Bank of East Asia is the only foreign bank that has a credit card operation on the mainland.
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