Hong Kong Banks Must Take `Reasonable' Steps to Bar Individual Yuan Loans

(Corrects identity of government agency.)

Hong Kong banks aren’t allowed to make loans in yuan to individuals, and should take “reasonable steps” to ensure yuan loans to corporate clients aren’t passed on to them, the Hong Kong Monetary Authority said.

Institutions that plan to engage in trade and settlement of yuan-denominated products must implement proper internal controls, Meena Datwani, the regulator’s executive director for banking conduct, wrote in a letter to dated today.

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