Chinese financial conglomerate Citic Group is reportedly planning to shut down two of its bank branches located in Los Angeles and New York in the wake of stringent regulatory requirements under the Volcker rule to be implemented next summer in the country.

Federal Reserve data cited by The Financial Times reports that both branches had total assets of under $500m as of 30 September 2013.

As per the Volcker rule, firms managing retail banks in the US will be subject to stringent requirements. The banks will be restricted on investing directly with their own money and engaging in proprietary trading.

Despite looming branch closure, the bank is considering ramping up its US presence, as it is among a group of Chinese entities, along with China Investment Corp, that are considered bank holding companies by US regulators.

The bank is also planning to launch a massive restructuring, including $37bn of assets infusion from China into Citic’s Hong Kong listed unit Citic Pacific, the Financial Times reported citing several of its senior executives.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.