Citibank Takes Risk by Issuing Cards in China.

Assesses the risk of Citigroup Inc. to offer credit cards in China that can be settled in either American dollars are Chinese yuan, allowing the bank to extend credit to Chinese consumers. Potential benefits to be accrued by Citigroup related to retail-banking and brand loyalty; Number Chinese citizens holding credit cards, indicating a large untapped market, according to management consultants McKinsey & Co.; Assessment of China's financial system, indicating the risks associated with market entry in an immature consumer-credit culture; Potential problems in China, including bank fraud, limited market-research and counterfeiting; Discussion of consumer-credit bubbles in South Korea and Hong Kong, resulting in unrecoverable loans.