HKMA doubles RMB Business Facility quota to RMB100b

The RBF quota assignment considers past facility usage and pipeline.

Forty participating banks will take part in the second phase of the RMB Business Facility (RBF), doubling the total quota to RMB100b from RMB50b in the first phase, the Hong Kong Monetary Authority (HKMA) announced.

Participating banks may apply for RMB funds within their assigned quota under the RBF from 1 December, providing RMB financing to local and overseas corporations, including capital expenditure and working capital term loans.

The specific quota assigned to each bank is based on its existing scale of relevant business, expected pipeline, and geographical reach of its overseas intragroup banking entities.

When determining the quota allocation, facility usage of the 24 banks that participated in the previous RMB Trade Financing Liquidity Facility and Phase 1 of the RBF has also been taken into account.

“With the support from the People’s Bank of China, the HKMA will continue to closely monitor the progress of the RBF, and will consider adding more participating banks as appropriate, subject to actual facility usage and market demand, with a view to further promoting the use of RMB in the real economy and fostering the growth of offshore RMB business in Hong Kong,” Chief Executive of the HKMA, Eddie Yue, said.