Licensing
Before China's WTO membership, Citibank was licensed only to provide corporate banking services to foreign invested enterprises (Pearce & Robinson, 2004, p. 30-2). Since the WTO induction, the licensing has not increased much more than any other company that was not afforded the huge head start that Citibank had.
Human Resource …show more content…
The two banks will establish a 50/50 joint venture company to manage a credit card business as soon as Chinese law will allow. The question arises, when will this occur? Citibank is well-known for their credit card business and should have put top priority into this venture earlier.
Citibank has also entered the market for China's non-performing loans. In December 2004, it purchased a substantial share of non-performing loans from Silver Grant International Industries. Silver Grant is one of the four asset management companies created by the Chinese government in the late 1990's to manage the non-performing loans from Chinese banks. The historical problem with this market has been the extreme high risk factors. "The communist system of awarding loans to state-owned-enterprises (SOEs), whether they are profitable or not, have lasted until the present day and some analysts estimate that NPL's make up almost 30% of all outstanding loans" (Gordon, G. …show more content…
They set many standards in leadership and management; unfortunately Team B feels that they did not apply these skills at the most opportune time and lost the coveted spot of first to compete position in access, services, licensing, human resource issues, and branch networking. Citibank has had a foothold in China since 1902 and has not been able to significantly out perform other financial institutions that have merely been in competition in China since China's entry in the WTO. This lack of greater success is a clear indication that Citibank has not been able to adapt to the environmental factors present in