The former chairman of US banking giant Citigroup Win Bischoff has been appointed as the chairman of Britain's Lloyds Banking Group, the state- controlled bank announced Monday. Bischoff takes over from Victor Blank, who announced in May that he would step down from his post, following criticism over his role in Lloyds TSB's takeover of struggling rival lender HBOS. Bischoff will start work on September 15. 'Lloyds Banking Group (LBG) has a proud history and an excellent customer franchise, and I am both honoured and pleased to accept the chairmanship of its board,' he said. 'Short-term we face many challenges but, in the longer term, the group is well positioned to deliver significant benefits to its customers, shareholders, employees and the public.' Bischoff spent most of his career with Schroders and was made its chairman of in 1995. He served as Citigroup chairman from 2007 until earlier this year. The LBG board consulted with its major shareholders over the appointment, including United Kingdom Financial Investments, the company set up to manage the government's investments in banks. LBG is 43 percent owned by the British taxpayer. Bischoff's appointment was also approved by industry regulator the Financial Services Authority. 'I am pleased to hand over to Sir Win Bischoff following his appointment as our next chairman,' Blank said. 'Sir Win has a wealth of senior banking experience which will be very valuable to the group in the future as the two banks are integrated to create the success the board envisages.' LBG has slashed around 7,000 jobs since its creation in January, when Lloyds TSB bought rival lender HBOS in a government-brokered deal. 