The People's Bank of China and the State Administration of Foreign Exchange have adjusted the macroprudential framework for full-scope cross-border financing by raising the macroprudential adjustment parameter for enterprises and financial institutions from 1.5 to 1.75. The change is intended to further improve macroprudential management of cross-border financing, expand cross-border funding sources for corporates and financial institutions, and guide them to optimise their asset and liability structures. The higher parameter takes effect on 13 January 2025.
Central Bank of the Republic of China 2025-01-13
People's Bank of China and State Administration of Foreign Exchange raise the macroprudential adjustment parameter for cross-border financing to 1.75
The People's Bank of China and the State Administration of Foreign Exchange have increased the macroprudential adjustment parameter for cross-border financing from 1.5 to 1.75. This adjustment aims to enhance macroprudential management, expand funding sources, and guide optimization of asset and liability structures for enterprises and financial institutions. The new parameter is effective from 13 January 2025.