FINANCE

China Caps Cross-Border Yuan Lending by Domestic Banks

Published: Feb. 27, 2026 7:18 p.m. GMT+8

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China’s central bank has introduced new rules to regulate cross-border interbank yuan financing, setting limits on how much domestic banks can lend to overseas institutions in yuan.

The People’s Bank of China said the measures are intended to support and standardize such financing.

The framework establishes a ceiling on banks’ net cross-border interbank yuan lending, bringing such business under a regulatory cap.

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China’s central bank set new rules capping cross-border interbank yuan lending, tying limits to banks’ capital strength.
Banks must trigger internal alerts if net lending reaches 80% of the set cap; the rules apply to most banks with international capabilities.
Rural financial institutions are prohibited from new cross-border yuan interbank lending, though current agreements can mature.

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What Happened When

2026：: China’s central bank introduced new rules to regulate cross-border interbank yuan financing, setting limits for domestic banks lending to overseas institutions.

2026：: The People’s Bank of China announced the new regulatory framework, establishing a ceiling on banks’ net cross-border interbank yuan lending.

2026：: Rural financial institutions are prohibited from conducting new cross-border yuan interbank lending, but existing business is allowed to mature.