Guangdong Development Bank (GDB) named Citigroup's Michael Zink as new president yesterday on the heels of the final approval of the Citigroup-led consortium's capital input into the bank.

Li Ruohong, former GDB board chairman, will retain his position.

Zink was formerly senior executive vice-president of Corporate and Investment Bank, Citigroup South Korea.

"Today's ceremony marks a milestone development of the restructured GDB," Zink said, "and we are ambitious to make GDB into a world-class banking institution."

The China Banking Regulatory Commission (CBRC) on Monday granted final approval to the Citigroup-led consortium's US$3.1 billion purchase of 85.6 per cent of GDB.

Zink is the second foreigner to govern a Chinese bank in China. Jeffery Williams, also an American, was the president of Shenzhen Development Bank Co Ltd for 14 months. Williams resigned on February 11.

Zink admitted he feels a heavy burden of responsibility.

For the time being, he said, the bank will be busy with the organization of the management team.

He said the new team will focus on developing human resources, investing in infrastructure for upgraded technological solutions, and expanding and innovating its businesses to sharpen the competitive edge of the bank.

Though Zink has experience as head of the corporate and investment bank of Citigroup South Korea, corporate and investment banking will not become the key business of GDB in the future, he said.

"We aim to become a market leader in every business we enter and we will offer full services," he said. "Our strategy is centred around our customers' needs."

Zink said he is fully confident of a bright future for GDB, as it has a good capital base, enthusiastic employees, managerial staff with international banking expertise, as well as the support of the provincial government of Guangdong and the CBRC.

The bank's net assets stand at 2.5 billion yuan (US$316.4 million), with its bad loan ratio under 5 per cent, and its bad assets ratio below 4 per cent. Those figures meet the CBRC's requirements.

Zink also said Citigroup will offer technical assistance to GDB as well as support in fields including risk management, financial innovation and human resource management.

Li Ruohong, board chairman of GDB, considers the newly completed transaction of the Citigroup-led consortium a great success.

The deal will help GDB shed its non-performing loans, solve historical deficits, and increase its capital, he said.

Li said GDB will increase its staff to meet the demand of future business expansion.

He did not discount the possibility that GDB will list some day in the future.

Editor: Yan