Central Bank: When the net cross-border interbank financing balance of the RMB reaches 80% of the upper limit, a warning should be issued.

Gelonghui February 26 | The People’s Bank of China issued a notice regarding matters related to cross-border interbank RMB financing business for banking financial institutions. The notice states that the net RMB funds lent out by domestic banks to overseas institutions must not exceed the upper limit of the net RMB cross-border interbank financing balance. Domestic banks should establish an internal early warning mechanism; when the net RMB cross-border interbank financing balance reaches 80% of the limit, relevant business departments should be alerted.