Nation raises foreign banks' debt quota

The National Development and Reform Commission announced on Monday it will allow foreign banks in China to apply for government approval for a quota increase in their medium to long-term foreign debt for 2019.

When granting approval to a foreign bank on the quota of its medium to long-term foreign debt, the NDRC will mainly consider factors such as the actual use of foreign debt by a foreign bank, its loans to fixed-asset investment projects for 2019, and its foreign currency funding needs for medium to long-term working capital loans, according to the commission.

"The NDRC will further enlarge the quota of offshore financing for foreign banks in China through foreign debt, based on the country's needs for economic growth and its financial situation ... Meanwhile, the commission will guide foreign banks to optimize the structure of their foreign debt, make their directions of investment more rational and improve their return on investment," said the commission in a statement posted on its website.