Letter sent to People's Bank of China on the Macro Prudential Assessment framework

2021-07-05 | Beijing, Shanghai

On the 5th of July, the Banking & Securities Working Group of the European Chamber sent a letter to Governor Yi Gang of the People's Bank of China (PBOC) signed by the President of the European Chamber, Mr. Joerg Wuttke, and the CEO of the European Banking Federation (EBF), Mr. Wim Mijs.

Although both the Banking & Securities Working Group of the European Chamber and the European Banking Federation (EBF) recognise and appreciate the recent efforts by the regulator to take into account the input from the foreign banking community by raising the upper limit for cross-border financing, there are however a few remaining issues affecting foreign banks in China.

Some elements of the measures regarding cross-border financing are having an impact on the derivative trading activities of foreign banks in China. Additionally, some elements of the broad credit growth calculation are generating an impact on foreign banks.