Clifford Chance
PBoC Implements Nationwide Macro-prudential Management on Cross-border Financing
12 May 2016
In early 2016, the People's Bank of China (PBoC) introduced a pilot macro-prudential management system for cross-border financing (MP Financing Management System) which specifically applied to 27 designated banks and non-financial enterprises registered in four free trade zones in Shanghai, Tianjin, Guangzhou and Fujian (FTZ). On 3 May 2016, the PBoC issued the Circular on Implementing Overall Macro-prudential Management System for Nationwide Cross-border Financing (New Circular) to extend the MP Financing Management System nationwide, which as this briefing highlights, significantly, impacts on the conduct of cross-border financing activities in a number of ways.
