Bank will partner with Royal Bank of Scotland to tap the growing segment
Bank of China, the mainland's second-largest lender, plans to set up a joint venture with strategic investor Royal Bank Scotland to tap the nation's rapid growth in credit cards.
The Beijing-based state lender would own 51 per cent of the joint venture with Royal Bank of Scotland holding the remainder, according to a report by Goldman Sachs which is helping arrange BOC's US$8 billion Hong Kong initial public offering later this month.
The plan is part of BOC's push to grow consumer banking, a business previously overlooked by state-controlled lenders who lean towards corporate clients.
Credit cards are already China's fastest-growing consumer credit product, according to McKinsey.
The tie-up between BOC and Royal Bank of Scotland, which leads a consortium that owns 9.61 per cent of the Chinese lender, would be similar to credit card arrangements between the Bank of Communications and HSBC, as well as Shanghai Pudong Development Bank and Citigroup.