Citibank

Citibank

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More info of Citibank

Once considered the most important bank in the United States, Citibank is one of those institutions that refuses to die. We say this because the 2008 crisis meant a before and after for many financial companies.

If you are interested in knowing a little more about its origins and current situation, we will tell you the most relevant information about its evolution.

Present of Citibank

Belonging to the Citigroup firm, Citibank is considered a global bank due to its assets in different parts of the world.

In fact, it has at least 3,280 offices distributed in 36 countries, the US market being the most predominant, with just over 980 branches in the most important cities, such as New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, Miami and Houston.

While its reputation continues to grapple with the aftermath of the mortgage crisis today, it has shown improvement in terms of stability and profitability. This company, which stands out for the preference of its online services, also offers investment portfolios, insurance and credit cards.

Since its near disappearance and the government's financial assistance of some $50 billion dollars, today it is debt free.

Birth of Citibank

The history of this American corporation begins more than 200 years ago, in New York City. With a total capital of $2.8 million dollars and from the hand of retired Colonel Samuel Osgood, the City Bank of New York was born in 1812.

Years later (1856), both the property and the administration of the entity would pass into the hands of the business magnate Moses Taylor.

During the financial crisis of 1837, the bank found it necessary to distribute its dividends. While in the second economic debacle (1856) 965 entities had to declare bankruptcy, the City Bank increased its share of deposits.

With the creation of the American banking system in 1863, this institution would be renamed the National City Bank of New York, a name it would hold for another 90 years.

After participating in the installation of the first transatlantic cable (1866), the successful evolution of this institution would be reflected in the last years of the 19th century.

This is how the National City Bank became the most important in New York in 1893. The following year, it was already considered the largest in the USA. This would lead to the creation of a foreign exchange operations department; the first in its class.

Expansion of the National City Bank in the s. XX

Apparently, the internationalization of this bank began on the Asian continent with the installation of offices in Manila and later in Panama (1904). After the creation of the Federal Reserve in 1913, the following year they would formalize the permission to have foreign headquarters.

The first of the National City Bank would be that of Buenos Aires (1914) and Rio de Janeiro (1915). The Calcutta, London and Shanghai branches would be annexed by the purchase of the IBC in 1918.

By 1919, this bank was valued at $1 billion. In addition to opening the first branch in New York (1921), this entity had other notable achievements.

Its directors were responsible for the application of compound interest in savings accounts, the first to organize a personal loan department and provide financing without collateral. All this happened under the mandate of Charles E. Mitchell.

Although the Great Depression of 1929 meant losses for the entity, its offices abroad compensated for this national debacle. In 1939, the National City Bank had 100 branches in 23 foreign countries, being the most important of the time.

Under the presidency of James Stillman Rockefeller, it would be renamed The First National City Bank of New York in 1955. Later, on its 150th anniversary (1962), it would change to First National City Bank.

The transformation of this institution into Citibank NA, occurred with the creation of Citigroup in 1968 and the subsequent change of the name First National City Bank (1976).

From then on, this consortium established its reputation among the American people for being a pioneer in the adoption of technology and providing a wide variety of services within retail banking.

Relevant facts of Citibank

Among many things, Citibank is known for:

• The launch of the First National City Charge Service or “Everything” credit card, which would later become MasterCard.
• The addition of checking accounts with no minimum balance, the invention of the negotiable certificate of deposit (CD), leasing operations, floating rate debt, and the purchase of Diners Club.
• The use of the first ATMs, the registration of the domain citibank.com before the WWW and access to online banking through software.

In the Busconómico comparator, you can find the best banking products from Citibank and other iconic US institutions, such as Chase Bank or Bank of America.

En español: Productos de Citibank USA