PBOC Supports the Launch of RMB Cross-Border Interbank Financing Business

On February 24, 2026, the People’s Bank of China issued the Notice on Matters Concerning RMB Cross-Border Interbank Financing Business of Banking Financial Institutions (the “Notice”), supporting domestic banking financial institutions in conducting RMB cross-border interbank financing business with overseas institutions in a regulated manner, which took effect upon issuance.

The Notice covers various types of RMB cross-border interbank financing business. It links the net outstanding amount of RMB cross-border interbank lending by banking financial institutions to their capital levels and funding strength, so as to promote the prudent and appropriate development of such business. It also establishes macro-prudential management parameters and provides for countercyclical adjustments in light of market conditions. The setting of relevant parameters fully takes into account market demand and the operating conditions of banking financial institutions, which will help provide stable liquidity to the offshore RMB market and promote the cross-border use of the RMB.