China increases lending limits for foreign banks
PBoC says move will create lending framework that prioritises renminbi
China has allowed foreign-owned lenders to issue more loans, in a move the country’s central bank said would create a lending framework that prioritised the yuan.
In a joint statement on April 15, the People’s Bank of China and the country’s foreign exchange regulator said the leverage ratios for three types of lender – foreign-owned banks, banks jointly owned by Chinese and foreign entities, and foreign bank branches in China – had been raised from 0.5 to 1.5. The leverage ratios for two of the
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