Citigroup has announced its intention to gain a larger share of the European banking market by launching a new venture in the continent.
The major US bank has created a new commodity trade division to conduct business in Europe as it seeks to take advantage of the decisions of several other banks to reduce exposure to the area, the Financial Times reports.
For instance, Credit Agricole and BNP Paribas have both reacted to the prospect of tougher regulatory rules in Europe under Basel III by pulling back from the continent - a move Citigroup is eager to capitalize on.
Deutsche Bank's Kris Van Broekhoven has been hired to manage this new unit and Citigroup intends to make a net income of around $200 million from it over the course of the next three years.
Citigroup's head of global trade John Ahearn said the business will start off by making investments in the soft commodities market.
By Claire Archer