State Administration of Foreign Exchange, Provisions on Matters Relevant to the Offshore Loan Business of Banking Financial Institutions (Draft for Comments)

国家外汇管理局关于银行业金融机构境外贷款业务有关事宜的规定 (征求意见稿)

September 30, 2021 | BY

Susan Mok

SAFE sets a ceiling on offshore bank loans

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Issued: September 18, 2021

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Ceiling on offshore loan balance = domestic bank's net tier 1 capital (for domestic branches of foreign banks, calculated based on their working capital) × offshore loan leverage ratio × macro-prudential adjustment parameter

In principle, an offshore loan extended by a domestic bank shall be used for expenditures falling within the scope of business of the offshore