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PBOC Raises Cross-border Lending Leverage Ratio for Foreign-funded Banks from 0.5 to 1.5
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To better support the real economy through financial services and promote trade and investment facilitation, the Peoples Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) issued a notice stating that the cross-border lending leverage ratio for wholly foreign-owned banks in China, sino-foreign joint venture banks in China, and domestic branches of foreign banks will be raised from 0.5 to 1.5. The same policy will apply to banking institutions established in Mainland China by financial institutions from Hong Kong, Macau and Taiwan, China. The cross-border lending leverage ratio for the Export-Import Bank of China will be increased from 3 to 3.5. If the calculated upper limit of the outstanding balance of cross-border loans is less than RMB10 billion, the upper limit will be set at RMB10 billion. Meanwhile, domestic banks that indirectly extend medium- to long-term loans of more than one year in domestic and foreign currencies to overseas enterprises by lending funds to overseas banks may allow the overseas banks to handle such business in accordance with the relevant laws and regulations of their respective countries or regions. (ta/a) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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