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People's Bank of China

CNY · Official Website

Latest Statement

⚖️ Neutral

People's Bank of China and State Administration of Foreign Exchange Officials Answer Questions on the Notification Regarding Adjustments to Banking Financial Institutions' Overseas Loan Business

2026-04-15

The People's Bank of China has issued a notification to adjust the policies governing overseas loan activities by banks, aiming to enhance support for enterprises operating abroad. Key changes include raising the overseas loan balance limits and optimizing management requirements for indirect loans, thereby facilitating better access to financing for foreign enterprises.

The overseas loan balance limit has been increased significantly, with a new cap of 100 million yuan established for certain banks.
Differentiated leverage ratios have been set for various banks to better accommodate their operational scales and support their overseas activities.
The notification allows for more flexible indirect loan management, enabling domestic banks to lend to foreign enterprises through overseas banks under local regulations.

Bank Profile

Mandate

Price stability, exchange rate stability, support economic growth and employment

Decision Types

Loan Prime Rate (LPR), Reserve requirement ratio (RRR), Medium-term Lending Facility (MLF)

Policy Instruments

Open market operations, Standing Lending Facility (SLF), Pledged Supplementary Lending (PSL), Window guidance

Target Indicators

CPI inflation (3%), GDP growth target, M2 money supply, Exchange rate stability

Communication Style

State Council aligned, less forward guidance, uses targeted lending tools

Committee

Monetary Policy Committee (MPC) - advisory role, State Council sets policy

Economic Indicators

Policy Rate	3.00%
USD/CNY	6.8976
GDP Growth	6.8%
M2 Growth	9.1%
10Y Yield	1.81%
2y10y Spread	+0.44%

HISTORICAL TRENDS

Policy Rate

FX Rate

CPI

GDP

10Y Yield

2Y-10Y Spread

Stance

Key Commodities

Top traded commodities for China

Commodity	Price	1D	30D
Brent Crude Oil	116.73 USD/barrel	+2.4%	-2.4%
Iron Ore	107.58 USD/mt	+6.5%	-10.7%
Copper	12,528.71 USD/mt	-3.3%	+51.4%

Recent Statements

People's Bank of China and State Administration of Foreign Exchange Officials Answer Questions on the Notice on Issuing the Management Measures for Outbound Loans by Domestic Enterprises 🕊️ Dovish

2026-03-20

🏦 Reserves

↑0 ↓1

📝 Classified Sentences

🏦 Reserve Easemp_credit

"To better meet the cross-border operational funding needs of 'going out' enterprises, the macro-prudential adjustment coefficient has been raised from the previous 0.5 to 0.6."

2025 Major Events in China's Monetary Policy 🕊️ Dovish

2026-02-10

⚡ Rate

↑0 ↓3 →0

🏦 Reserves

↑0 ↓1

💧 QE/QT

↑0 ↓1

📝 Classified Sentences

⚡ Rate Cutmp_interest_rate

"On May 7, the People's Bank of China decided to cut the re-loan rate by 0.25 percentage points."

💧 Liquidity Easemp_credit

"On May 7, the People's Bank of China decided to increase the quota for re-loans supporting agriculture and small enterprises by 300 billion yuan, encouraging local financial institutions to further increase credit to agricultural, small, and private enterprises."

⚡ Rate Cutmp_interest_rate

"On May 8, the People's Bank of China cut the policy rate by 0.1 percentage points, adjusting the 7-day reverse repurchase operation rate from 1.50% to 1.40%."

🏦 Reserve Easemp_interest_rate

"On May 15, the People's Bank of China lowered the reserve requirement ratio for financial institutions by 0.5 percentage points (excluding those already at a 5% reserve requirement), and lowered the reserve requirement ratio for auto finance companies and financial leasing companies by 5 percentage ..."

⚡ Rate Cutmp_interest_rate

"On May 20, the People's Bank of China authorized the National Interbank Funding Center to announce the Loan Prime Rate (LPR), with the 1-year LPR at 3.0% and the 5-year LPR at 3.5%, both down by 10 basis points from the previous announcement."

Announcement No. 2 of the People's Bank of China in 2026 ⚖️ Neutral

2026-02-09

People's Bank of China and China Securities Regulatory Commission Officials Answer Questions on the Notice Regarding Further Prevention and Handling of Risks Related to Virtual Currencies ⚖️ Neutral

2026-02-06

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