Legal Issue In Respect If The Reform About State-ouned Banks After China's WTO Accession

China has committed to all members of the World Trade Organization("WTO")in its WTO accession,to fully open its financial sector in 2006,which will enable the transnational banks to compete in China's market. Although the overall operation circumstance of the State-owed banks has been significant changed,however,the banking system and the operation method are still on a extended track of "the planned economy",without shaking off interference of the govemments completely.All the outstanding problems cause of the mom-performing loan,weakly regulated,incapable in risk-control circumstance.Moreover,the lack of sound creditworthiness also poses thomy problems to the development of the State-owned banks.The remedies that will enable the state-owned banks to survive the market competition are to make a thorough system reform to the current system,fasten the merger and acquistion of the state-owned banks and reform the state-owned banks into share-holding banks,perfect its corporate gouvmance and change the separate banking system to universal banking system with the espectation of build a sound creditworthiness environment from external to internal of the banking system,strengthen the punitive system,foster a sound banking credit insurance system and perfect the banking regulatory system.Each and every of these methods is relied on the perfection of the legal system.This essay is to address the system reform of the state-owned banks,credit construction and legal issues hereof from a perspective other than technical level.