FINANCE

China Lifts Offshore Lending Caps for Foreign Banks to Boost Yuan Use Overseas

Published: Apr. 15, 2026 11:54 p.m. GMT+8

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Encouraging domestic institutions to channel funds overseas is expected to promote yuan outflows. Photo: VCG

China’s central bank has raised overseas lending caps for foreign-funded banks and the Export-Import Bank of China (Exim Bank), aiming to encourage cross-border capital outflows and expand the global use of the yuan.

The relaxed rules will allow lenders to significantly increase their offshore loan portfolios, taking advantage of the yuan’s growing appeal as a low-cost financing currency amid a wide interest-rate gap between China and the U.S.

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PBOC raised offshore lending leverage ratio to 1.5 from 0.5 for foreign-funded banks (200% quota rise) and to 3.5 from 3 for Exim Bank; unchanged for others.
Minimum quota increased to 10 billion yuan from 2 billion; eased indirect lending rules.
Aims to boost yuan outflows and global use amid >240 bps US-China rate gap and yuan's 2% gain since March 2026.

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