According to the official website of the people's Bank of China, in order to better serve, build a new development pattern and further support and standardize the overseas loan business of domestic banks, the people's Bank of China and the State Administration of foreign exchange recently jointly issued the notice on matters related to the overseas loan business of banking financial institutions (hereinafter referred to as the notice), which will be implemented from March 1, 2022. According to the person in charge of relevant departments of the people's Bank of China and the State Administration of foreign exchange, the main contents of the notice include: first, establish a policy framework for overseas loans of banks integrating domestic and foreign currencies. The notice unifies the provisions on the handling of overseas RMB and foreign exchange loans of banks, and further facilitates the orderly development of overseas loans of banks. Second, expand the scope of overseas RMB loan business of banks. The notice expands the scope of overseas RMB loan business of banks from the original "going global" project to all overseas non-financial enterprises, and facilitates banks to carry out overseas loan business in RMB. Third, bring the cross-border capital flows related to bank overseas loans into the macro Prudential management policy framework. The notice sets the upper limit of loan balance as "net tier 1 capital * leverage ratio of overseas loans * macro Prudential adjustment parameters" in combination with the net tier 1 capital of each bank and the development of overseas loan business. The people's Bank of China and the State Administration of foreign exchange can adjust relevant parameters in time according to the macroeconomic situation, so as to realize the counter cyclical management of cross-border capital flows. At present, the setting of the upper limit of overseas loan balance fully takes into account the scale of stock business of each bank and reserves sufficient space for banks to carry out business. Fourth, clarify the requirements of banking development and do a good job in risk prevention. When conducting overseas loan business, domestic banks shall fully understand the international operation rules and risk management, establish perfect business operation procedures and internal control system, and implement it after reporting to the people's Bank of China and the administration of foreign exchange for the record. Next, the people's Bank of China and the State Administration of foreign exchange will, in accordance with the provisions of the circular, guide domestic banks to carry out overseas loan business in a stable and orderly manner, improve the risk prevention level of cross-border business, better serve and build a new development pattern. There is a three-month transition period from the date of formal implementation of the notice. Domestic banks shall complete the filing work within the transition period and carry out overseas loan business in accordance with the requirements of the notice. (outlook new era)