Citigroup’s Expansion in China Delayed by US Regulators, Reports Bloomberg News via Reuters

Citigroup’s plans for expansion in China are facing challenges due to regulatory issues in the U.S. According to a report from Bloomberg News, the Federal Reserve has imposed a penalty on the bank related to its data management and risk controls.

The bank is experiencing delays in establishing a standalone securities firm as it has not yet received a clearance letter from the Federal Reserve, which is necessary for verification by Chinese authorities. Citigroup was directed to address its data management issues domestically after incurring fines totaling $136 million in July. This has complicated the bank’s ability to comply with licensing requirements in China.

Despite these setbacks, Citigroup is maintaining discussions with China’s securities regulator regarding the establishment of its business and has no intention of withdrawing its application. The situation remains dynamic and may evolve further.

Citigroup has opted not to comment on its licensing process in China but reiterated its commitment to supporting its clients in the region.