The People's Bank of China (PBoC) issued a notice setting macroprudential rules for RMB cross-border interbank financing by banking financial institutions, aiming to standardise the development of this business and strengthen management of cross-border capital flows. The measures apply from the date of promulgation. The framework covers all types of RMB cross-border interbank financing business and links a banking institution’s net balance of such financing to its capital level and financial strength. It also sets macroprudential management parameters and provides for counter-cyclical adjustments based on market conditions, with the stated aim of supporting stable liquidity in the offshore RMB market and promoting cross-border RMB use. PBoC indicated it will proceed with implementation of the notice and position cross-border interbank financing to support the real economy and the development of the offshore RMB market.
Central Bank of the Republic of China 2026-02-26
People's Bank of China issues notice tying RMB cross-border interbank financing net balances to banks’ capital and financial strength
The People's Bank of China issued macroprudential rules for RMB cross-border interbank financing to standardize business development and manage capital flows. The framework ties a bank's net financing balance to its capital and financial strength, with provisions for counter-cyclical adjustments. The measures aim to support stable liquidity and promote cross-border RMB use.