Two departments: the leverage ratio of foreign loans for wholly foreign-owned banks, Sino-foreign joint venture banks, and foreign bank branches in China is being increased from 0.5 to 1.5.

On April 15, the People's Bank of China and the State Administration of Foreign Exchange issued a notice regarding the adjustment of overseas lending business for banking financial institutions. It was proposed to raise the leverage ratio of overseas loans for domestic and foreign-owned banks, domestic and foreign joint venture banks, and foreign banks' domestic branches from 0.5 to 1.5. Financial institutions in Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Region that establish banking institutions in mainland China will be subject to the same rules. The leverage ratio for overseas loans for export-import banks will be raised from 3 to 3.5. If the calculated limit for overseas loan balance is less than 10 billion yuan, the approved limit for overseas loan balance for that bank will be set at 10 billion yuan.