News: NAB UPDATE 1-National Australia Bank plans to set up credit unit in Paris catering to Europe

(Adds details from statement)

Nov 29 (Reuters) - National Australia Bank (NAB) is looking to set up a Europe-focused credit unit in Paris, the lender said on Friday, at a time when challenging market conditions are spurring other financial firms to wind down operations.

Australia's third-largest lender said it was seeking regulatory approval from the French prudential authority to set up the unit to offer wholesale banking and investment services to much of Europe.

"Our Australian and New Zealand clients rely on our local knowledge and relationships to navigate the European market, so we're continuing to respond to this need," David Gall, the chief customer officer of corporate and institutional banking at NAB, said in a statement.

"Investors are looking for opportunities, particularly in the infrastructure sector."

NAB has operations in Britain, spanning foreign exchange to project financing, that also cater to Europe.

Last month, Australian investment bank Macquarie Group (MQG) said it was exiting its cash equities business in Europe as returns took a hit from difficult market conditions and tougher regulations.