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Research On Perfection Of Laws On Loan Management

Posted on:2007-02-14Degree:MasterType:Thesis
Country:ChinaCandidate:P HeFull Text:PDF
GTID:2166360215489363Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Providing a loan is one of the most important capital operations of banks. Statistics from People's Bank of China indicated that bank loan comprises nearly 90% of the total credit amount in domestic financing market, which proves that enterprises in China rely greatly on bank loan.In modern capital market, the bank loan operation is facing series of risks because of the instability of economic conditions, incomparability of information between bank and enterprise and the intervene from government. Therefore, countries all over the world attached great emphasis on supervising bank loan via legal means, within which People's Bank of China has also carried out the Provision of Providing Loan (hereinafter called"Provision"). Provision has regulated the basic legal supervision mechanism of bank loan, so as to be considered as the"Bible"of commercial bank, though it is just a Ministry level administrative regulation. Nevertheless, with the time went by and economic conditions changed, some of the regulations of the Provision can not adapt to the practice. It is essential and urgent to perfect the basic legal management mechanism of bank loan based on the situation of the country through learning from advanced international experiences.The thesis consists of four chapters and trying to analyze the default and disadvantages of the Provision of Providing Loan and related regulations by means of criterion analysis and demonstration analysis, and provide suggestions on establishing laws on legal management mechanism of bank loan.Chapter 1 has introduced the basic theory of legal supervision mechanism of bank loan in brief, defined some concept which will be discussed hereinafter, and suggested the laws on loan which includes laws on loan transaction and laws on loan management. It is indicated in the thesis that the laws on loan management is a kind of economic law in nature which should be regulated by the legal principle of economic law, financial law and administrative law, these lognitudinal supervise principles should be observed and the loan transaction between equal entities shall not be intervened. Viewpoints prescribed in Chapter 1 has paved for the discussion hereinafter.Chapter 2 has initially prescribed the content of Provision, summarized and appraised the draft issued by People's Bank of China and Bank Supervision Committee of China in 2004. Chapter 2 has indicated the default of current valid Provision and related regulations, including:as refers to the general rules of Provision, the guideline conflicts with the Commercial Bank Law which is the law of higher level ;as refers to the object of loan, the definition is not explicit; as refers to the legal elements, the structure of term of loan lacks of multiplicity, the division of loan and regulations on loan contract shall be improved;as refers to the legal supervision mechanism of bank loan, investigation before loan emphasizes too much on static finance and the method of managing after loan needs to be advanced;as refers to the secede mechanism of loan, the regulations on security of loan is hard to be operated in practice and the assets securitting flat also needs to be improved;as refers to collective bank loan, the current regulations is not quite applicable to the practice. Chapter 3 has researched on the perfection of legal supervision mechanism of bank loan in China. Firstly, the thesis indicated the important significance of improve the current Provision and the difficulties are faced. Secondly, based on the common senses and debates on modifying the Provision, suggestions on modification of Provision are put forward which considered that the self-operate of banks shall not be extended in considering that the right of borrower need to be protected, in addition, the Provision shall be connected and coordinated with other laws and regulations in order to establish the system of legal supervision mechanism of bank loan. Afterward, Author put forward suggestions on the lacuna mentioned in the preamble:consummate the general rules of Provision, make clear that the"security"is the prime principle of loan management;consummate the regulations on object of loan management, make clear the definition of"the same loanee", enlarge the meaning of"related person"and regulated explicitly the rights of borrower;consummate the regulations of legal elements on loan management, controls the expanding term of loan and immunity strictly;consummate the regulations of legal supervision mechanism of bank loan, establish a"district centralized loan managing mechanism"; build up a reasonable secede mechanism of loan,construct assets securitting flat;emphasize the implementing of collective bank loan.At the end of the thesis, it is suggested that in order to face the challenge of the growing foreign investment, the legislation authority shall modify the Provision as soon as possible according to a unanimous guiding line, in order to prompt the favorable development of bank industry, as well as insure the security and effectiveness of loan operation.
Keywords/Search Tags:General Provision Of Loan, Credit Loan, Loan Management
PDF Full Text Request
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