The People's Bank of China abolishes the upper limit on the financing ratio of RMB accounts

The People's Bank of China has issued a notice clarifying the relevant matters of RMB cross-border interbank financing business for banking and financial institutions, which will be implemented from the date of issuance. According to the notice, domestic banks whose RMB cross-border interbank financing stock business exceeds the upper limit of net lending balance on the day of implementation will suspend handling new RMB cross-border interbank lending business from the next day until the net lending balance returns to the upper limit, and the stock lending business will naturally expire. At the same time, Article 6 of the Notice of the People's Bank of China on Simplifying the Cross border RMB Business Process and Improving Relevant Policies (Yinfa [2013] No. 168) regarding the upper limit of RMB account financing ratio shall be abolished.