Prevention And Control Of The Movables Financing's Legal Risk

In the global context of financial and economic integration, the market and competitive environment which banks face has undergone tremendous changes. The bank's business types have a corresponding rapid expansion, providing a full range of financial services has become bank's restructuring direction. At the same time, the international financial community is facing a number of risks and tests. From Barings, Allied Irish Bank, Lehman Brothers and other individual events to the Wall Street financial crisis and global financial crisis, reflecting on these risk events people often find the shadow of legal risk, therefore, studying the bank's legal risk has become a subject of great practical significance.With "Property Law" and the new accounts receivable pledge registration publicity system was put into use, movables financing has been gradually developed. This business doesn't only help to expand bank's profits, but also help to change our long-standing difficulties in financing situation of SME, so we should see the importance of the legal risk's prevention and control.Now there are many different views on the legal risks in the academic area, and basically stay in the overall legal risk for commercial banks, but in practical operation, if the banks want to do better risk prevention and control, they should grasp from the specific business. Though grasping the cases, certainly it will be helpful to all business. So in this paper, there are legal risk analysis and specific legal risk prevention and control measures for the movables financing business, hoping to have a reference for risk prevention and control to movables financing.Facing so many different definition of legal risk, this paper chooses the International Bar Association's definition. It's said that the legal risk is the result of operations of banks do not meet legal requirements or external legal events leading to the possibility of the risk exposure. This definition more clearly defines the legal risks of this particular provision of qualitative phenomena. Through a clear definition of legal risk, the paper first talk about the movables financing's content, types, characteristics and so on, then it will analyze the movables financing's legal risks, finally it will provide the prevention and control measures.