Citibank China says it has received approval from the China Banking Regulatory Commission Hubei Branch to establish two new lending companies. This marks the first time an international bank has received permission to establish the lending company model in China.

The two companies will open in Gong’an and Chibi of Hubei Province. They will respectively be known as Hubei Jingzhou Gong’an Citi Lending Co., Ltd. and Hubei Xian’ning Chibi Citi Lending Co., Ltd. Both lending companies are expected to start operation within months.

Located in Hubei Province in Central China, both Gong’an and Chibi are experiencing robust economic growth and agricultural development, with strong credit demand. The new lending companies will focus on offering secured and unsecured loans to the underserved segments of the local population, and supporting local economic development by making credit more accessible.