Citigroup will become the first western bank to issue credit card under its own brand on China's mainland. [CFP]

Citigroup announced yesterday that it has received approval from the China Banking Regulatory Commission to issue credit cards in China and that it plans to offer credit cards to Chinese customers later this year.

The commission's decision means that the American banking giant will become the first non-Asian bank to offer its own brand of credit cards in China.

Citi China, Citigroup's locally incorporated bank, has offered joint-branded credit cards with Shanghai Pudong Development Bank (SPDB) since 2003. Citi China provided technical and personnel support.

After securing an independent license for credit business in China, Citi China said it will focus on its own credit card business and recall staff originally assigned to SPDB.

Andrew Au, chief executive of Citi China, said the ability to issue credit cards should help the bank to sharpen its competitive edge as it looks to offer more services to its expanding customer base.

Due to the fact that both the retail market and big clients are controlled by domestic banks, credit card business is seen by foreign banks as a way in which they can increase their presence in China. The demand for credit cards has grown rapidly in China over the past few years and become an important source of revenue for banks.

According to statistics released by the central bank, approximately 268 million credit cards had been issued in China as of the end of September 2011, more than five times the level at the end of 2006.

China's business press carried the story above on Tuesday.

Contact the writer of this story at: hes@china.org.cn.