Citibank has set up a 100-strong team of staff to handle corporate loans to small and medium-sized enterprises as it expands its lending business in the SAR, according to newly appointed Hong Kong head Chan Tze-ching.
'We took a very prudent approach towards lending to Hong Kong companies before the financial turmoil started in October 1997,' he said.
'At that time asset prices had risen to dangerous levels, and the price war for corporate lending was very fierce.
'Currently, property prices and lending rates for corporate loans have returned to reasonable levels. We consider it's the right time to expand our share of the local lending market.' The US banking giant now only has a Hong Kong market share of 6 per cent in consumer lending, and 3 per cent for corporate lending.
Mr Chan said the bank would join more syndicated loans for the biggest local corporations. It would also increase loans to small and medium-sized enterprises through the 100-employee section called Citibusiness.
Citibank's move is in contrast to most banks, which remain unwilling to lend to small companies due to increasing corporate failures amid the economic downturn.
'Many small and medium-sized players are very good companies and borrowers,' Mr Chan said.