The People's Bank of China Abolishes the Upper Limit Regulation for RMB Account Financing Ratios

Odaily News The central bank has issued a notice concerning matters related to RMB cross-border interbank financing business for banking financial institutions. This notice shall take effect from the date of its issuance. On the day this notice takes effect, domestic banks whose outstanding RMB cross-border interbank financing business exceeds the upper limit of the net financing out balance shall suspend the handling of new RMB cross-border interbank financing out business from the next day, until the net financing out balance returns to within the upper limit, and the outstanding financing out business shall mature naturally. The provisions regarding the upper limit for RMB account financing ratios in Article 6 of the "Notice of the People's Bank of China on Simplifying Cross-border RMB Business Processes and Improving Relevant Policies" (Yin Fa [2013] No. 168) are simultaneously abolished. (Jin10)