Citigroup is aiming to cut its assets 40% from their peak before the financial crisis as it makes radical changes to its business and returns to its banking roots, chief executive Vikram Pandit said on Monday.

At a European Central Bank panel on financial system policy, Pandit said the "return to basics' comes after Citigroup learned a series of lessons from the crisis that have included making dramatic changes to its funding and liquidity, risk management and the way it treats its local entities--which now match their assets and liabilities in local currency terms.