Sept 22 (Reuters) – Citigroup (CN) launches new tab expansion plans in China after U.S. regulations after Federal Reserve fines banks for data and risk management It is facing roadblocks with authorities, Bloomberg News reported on Sunday.
According to Bloomberg, the bank has not yet received a letter of approval from the US Federal Reserve confirming its regulatory status as required by Chinese authorities, causing delays in establishing an independent brokerage firm.
The report said Citi was directed to resolve data management issues domestically after being fined a total of $136 million in July. It added that the fines would make it more difficult to meet China’s licensing rules.
The New York-based bank continues to hold talks with China’s securities regulators to set up the business and has no plans to withdraw its application, Bloomberg reported, citing people familiar with the matter. The report cited people familiar with the matter, adding that the situation is fluid and subject to change.
Citigroup declined to comment on the ongoing process to obtain a license in China, saying the company remains committed to supporting its customers in the country.
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Reporting by Harshita Meenakshi in Bengaluru. Editing: Christopher Cushing, Diane Craft, Christian Schmollinger
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