Guangdong bank’s new man
MICHAEL G. Zink, the former head of Citibank Korea, has been named the new president of Guangdong Development Bank.
Guangdong’s former president quit after a Citigroup-led consortium won a US$3.1 billion bidding war on the lender.
Zink, a Citigroup veteran with 19 years’ experience in the United States firm, has had corporate banking and executive management roles in New York, Cote d’lvoire, Gabon, Tunisia, Russia, Australia, Indonesia, and South Korea.
Citigroup has six seats on the 16-seat board of the lender in China’s southern commercial hub. One is an independent executive.
The appointments were approved at a board meeting on Monday, Citigroup said yesterday.
Citigroup, the biggest US financial firm, and its partners, won out against Paris-based Societe Generale SA, and Ping An Insurance (Group) Co in the 18-month-long race for a combined 85.6 percent stake in Guangdong Development Bank.
The New York financial services company, China Life, State Grid and CITIC Trust and Investment Co each holds 20 percent, while IBM holds another 4.74 percent and Guangdong Finance Investment Holding, an investment arm of the Guangdong government, holds 0.85 percent.
The bidding money was injected into Guangdong bank, the country’s 11th-biggest lender, yesterday.
Citigroup says it will help improve the internal governance, risk management, introduce lending expertise, and upgrade technological infrastructure.
“There’s lots of restructuring to be done in the future to make the lender a globally competitive one,” said the China Banking Regulatory Commission.
Guangdong bank is a test case for banking reform as regulators allowed the bank to sell a majority stake to private investors to ease its debt burden.
Zhang Guanghua, the former president, quit last Monday. He was reported to have joined China Merchants Bank.