PBOC Plans to Set Ceiling on Offshore Lending by Chinese Commercial Banks, Expand Renminbi Lending Scope


Source: chinabankingnews.com chinabankingnews.com

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China’s top financial regulators plan to put curbs on the offshore loan balance of the country’s commercial banks, while also freeing up areas to which they’re permitted to extend credit. The People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) recently issued the draft version of the “Provisions Concerning Arrangements in Relation to the Offshore Lending Operations of Banking Sector Financial Institutions” (关于银行业金融机构境外贷款业务有关事宜的规定(征求意见稿)) for the solicitation of opinions from the public. The provisions primarily cover four areas including: - Establishing a policy framework for the offshore lending of domestic banks which integrates domestic and foreign currencies....