To further implement the spirit of the Fourth Plenary Session of the 20th Central Committee, enhance the openness of capital accounts, develop the offshore yuan market, and improve the macroprudential management of cross-border capital flows, the People's Bank of China issued the "Notice on Matters Related to Cross-Border Interbank Financing Business in Yuan by Banking Financial Institutions" on February 26, 2026. The notice supports domestic banking institutions in conducting cross-border interbank financing activities with overseas entities in a standardized manner. It takes effect immediately upon issuance.

The notice covers all types of cross-border interbank financing operations in yuan. It links the net financing balance of banking institutions' cross-border interbank yuan activities to their capital levels and funding capacity, promoting reasonable business conduct. Macroprudential management parameters have been established to enable countercyclical adjustments based on market conditions. These parameters take into account market demand and the operational status of banking institutions, helping to provide stable liquidity for the offshore yuan market and facilitate the cross-border use of the currency.

Moving forward, the People's Bank of China will steadily advance the implementation of the notice to effectively leverage cross-border interbank financing in serving the real economy and promoting the healthy development of the offshore yuan market.