In order to further support and standardize the overseas loans from domestic banking financial institutions, the People's Bank of China and the State Administration of Foreign Exchange (SAFE) have jointly drafted the provisions relating to overseas loans handled by the Banking and Financial institutions that are open to the public for opinions.

The regulations point out that the scope of overseas RMB loans from domestic banks will be further expanded. At present, compared with overseas foreign-exchange loans, the business scope of RMB loans for overseas projects made by domestic banks is relatively narrow. Such loans are limited to overseas direct investment, foreign-contracted projects and exporters' credit.

The new regulations will lift the restriction and allow domestic banks to directly carry out overseas RMB loans to enterprises, within the approved scope of business. Overseas lenders are no longer limited to "going out" projects.

In the way of providing loans, combined with business practice, domestic banks are allowed to finance medium-and long-term funds over one year to overseas banks, according to the needs of overseas loans. It will facilitate the cooperation between domestic banks and overseas banks who could carry out pre-loan investigation and post-loan management.

Sourced from http://m.safe.gov.cn/safe/2021/0918/19875.html#