The Legislative Analysis Of The Responsibilities Of The Medium-and Pint-sized Banks In Communities

Each community in China is faced with the same problem, that is, lacking sufficient funds. With the withdrawal and combination of the commercial banks in a large scale in China, the crisis of inanition is followed ,thus leading to the result that the development of the community is restricted severely. In such a case, some kind of financial organizations which are suitable for the unbalanced economic development is needed urgently. Meanwhile, the medium-and pint-sized banks correspond with it naturally. They have the necessary capital structure and receives more restrictions from the government, which allows them to operate only in certain areas. Moreover, their branches are also limited in the nearby districts of their headquarters. Therefore, compared with the good-sized banks, they are born of many territorial features which accord with the local particularity very much. Based upon the above, an idea of transforming the medium-and pint-sized banks within the law and with the community's responsibility is put forward in this paper. It 's purpose is to look out for a kind of financial organization as the backbone of the community and to orientate suitably the medium-and pint-sized banks in the market, in order to achieve common and shared benefits between the former and the latter. The first chapter of the paper sets the responsibilities of the medium-and pint-sized banks in the community. This is a fresh topic which is seldom discussed by the authorities, let alone put forward an agreement of their responsibilities. However, this paper analyses their responsibilities and features according to the exact given definitions of the medium-and pint-sized banks and the community. The second chapter handles the relevant theory and legislation to the above mentioned responsibilities, based on which legislative regulations are made out to direct the duty-transformation of the medium-and pint-sized banks. The theory is mainly coming into being from the social obligations' and the community banks' theory; while the legislation is involved in corporation laws, bank laws, commonweal enterprise contribution laws and so on. The legislative regulations deal with two problems here, one is whether the moral responsibilities of the medium-and pint-sized banks can be established in the form of law, the other is what kind of legislative mechanism should be adopted. The third chapter is most important, in which the problems newly coming forth with the regulation and construction are laid out. Firstly, according to relevant responsibilities, the medium-and pint-sized banks should help the development of the community and the relative people's rights and interests, besides play the role of seeking benefits by only the shareholders. Secondly, the medium-and pint-sized banks should devise some internal and external changes to suit well. As to the internal changes, the properly orientated directorates should be made popularly just as the European and American countries do; the non-shareholders should also participate in the management. As far as the external changes are concerned, there are four aspects to be regulated. The first one, the appropriate orientation of the medium-and pint-sized banks in the market; secondly, establish and consummate the mechanism for them to enter, develop and exit the market; thirdly, reinstall and re-regulate present medium-and pint-sized banks; fourthly, establish and consummate the credit system.