Citigroup plans major expansion in Asia

Citigroup plans major expansion in Asia

SINGAPORE (AP): Asia will be a major target in U.S. financial services giant Citigroup's plans for global expansion, executive committee chairman Robert E. Rubin said on Tuesday.

"Our strategy is to grow very aggressively in Asia," Rubin said at a conference in Singapore on electronic finance.

Citigroup's recent acquisition of Associates First Capital Corp., which has a major consumer finance business in Japan, is an example of the lender's interest in Asia, Rubin said.

Citigroup will pay US$29.83 billion in stock for the Dallas- based company.

Citigroup wants to "build our capabilities in this really quite remarkable part of the world," said Rubin, who served as Treasury Secretary under President Clinton until July last year.

Rubin described the world's developing economies as, "probably the single greatest opportunity" for Citigroup as it pursues its expansion plans.

But he said he was concerned that economic and financial reform efforts in some Asian countries appeared to be slowing as the region rebounded from its economic crisis of 1997 to 1998.

"In Asia, while there is much that is positive, and the most likely scenario may well be favorable, I believe, at the same time, that complacency may be setting the stage for trouble later on," he said.

Asian countries also have a long way to go toward smoothing out disparities in financial sector regulation, Rubin said.

In order for countries to realize the potential of pan-Asian banking, "countries in this region must find a way to work together to harmonize their regulatory systems," he said.

New York-based Citigroup has some 100 million customers including consumers, corporations, governments and institutions in 100 countries.

The company provides a range of financial services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management.