Citigroup strategy to convert Bank Handlowy approved

The Banking Supervisory Commission (KNB) has approved Citigroup's strategy for the creation of Bank Handlowy Holding which will comprise of three units including the retail bank Handlobank. The plan calls for Bank Handlowy to merge with Citigroup's Polish subsidiary and become part of Citibank Polska which will be charged with servicing small and medium size enterprises. KNB is expected to officially endorse the strategy by clearing Citigroup to acquire 66% of shares in Handlowy. Citigroup was under pressure from the Polish authorities to disclose details of how it wished to develop Handlowy or risk losing a chance to buy the bank. According to National Bank of Poland (NBP) president Hanna Gronkiewicz-Waltz, Citigroup needed to guarantee Handlowy would remain on the bourse as recommended by the Securities and Stock Exchange Commission (KPWiG), before KNB would clear the group to purchase Handlowy. (Puls Biznesu 1, 4) S.M.