| Warsaw: consolidation among western banks is reshaping local markets to the east |
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In the months since Citibank's surprise December announcement that it would acquire a majority stake in Poland's largest trade bank, much has been made of the US bank's skill and stealth in doing the deal. Not only did Citibank secure terms acceptable to Warsaw-based Bank Handlowy, it carefully avoided offending nationalist sentiment among those increasingly vocal Poles outraged by the sale of the country's family silver to westerners. Handlowy after all has a 131-year heritage in Poland.
But what has been less remarked on following the completion of the $1 billion deal is the fact that Citibank's decision to buy an established franchise in central Europe's largest market marks a significant change in strategic tack. In Poland, unlike most of the other 100 countries where it has operations, Citibank is buying rather than building.