Two departments: to raise the leverage ratio of foreign loans from domestic and foreign-funded banks, Sino-foreign joint venture banks, and foreign bank branches in China from 0.5 to 1.5.

The People's Bank of China and the State Administration of Foreign Exchange issued a notice regarding the adjustment of overseas lending business of banking financial institutions. It proposes to raise the leverage ratio of overseas loans for domestically-funded foreign banks, domestically-funded Sino-foreign joint venture banks, and foreign banks' domestic branches from 0.5 to 1.5. Financial institutions in the Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Region that set up banking institutions in the mainland will be subject to the same regulations. The leverage ratio for overseas loans of the Export-Import Bank will be raised from 3 to 3.5. If the calculated limit of overseas loan balance is less than 10 billion RMB, the approved limit for overseas loans of that bank will be set at 10 billion RMB. Domestic banks can indirectly provide foreign currency loans of one year or more to overseas companies by funding through overseas banks, and the overseas banks can handle this according to relevant laws and regulations in their respective countries or regions.