Citigroup is reportedly exploring options to divest its retail banking unit in Japan, as part of its strategy to focus on other businesses in the country.
The US banking giant has approached some global banks, and is contemplating to organise auction for the sale process.
The move comes at a time when Japanese banking industry is witnessing weak loan demand and decreasing interest margins.
If the proposed plan materializes, Citigroup will have with only corporate banking, investment banking and trading business in Japan.
The US lender, which manages a branch network of 33 offices in Japan, has already retreated from retail banking business in Spain, Greece, Turkey, Honduras, Turkey, Romania, Uruguay and Paraguay due to low returns.
In 2004, the Japan Financial Services Agency (FSA) asked the firm to close its private-banking activities in the country, following revelation of unlawful trading practices and lax anti-money-laundering procedures.
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.
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 GlobalDataCitigroup had agreed to improve the measures for governance and internal-control systems; however, in 2009 the FSA ordered Citibank Japan to postpone sales activities at the bank’s retail business for a month for weaknesses in its anti-money-laundering policies.