Central Bank: Supports domestic banks in conducting cross-border RMB interbank financing business in accordance with legal and compliant principles, with controllable risks

Foresight News: The People’s Bank of China has issued a notice regarding matters related to cross-border interbank financing of RMB by banking financial institutions. It mentions supporting domestic banks to meet market demand and conduct RMB cross-border interbank financing business in accordance with laws, regulations, and risk controllability. Domestic Chinese-funded banks, wholly foreign-owned banks, and Sino-foreign joint venture banks should manage related activities uniformly under the head office, and according to the principle that substance prevails over form, all RMB cross-border interbank financing activities should be included within the scope of management, with sound risk management and internal control mechanisms established and improved.