Study On The Legal Problems Arising From Foreign Capitals' Merger And Acquisition Of The Domestic Banks

China fully opened up banking industry to the foreign competitors on the December 11, 2006. From then on, there was not any obstacle on policy. So how to deal with the full competition of stronger foreign financial organizations had become a big problem that most of the domestic banks faced.Indubitably there is no competing experience under the market economy for domestic banks to learn. They must explore the best way to deal with the circumstance that more and more strong rivals enter domestic banking market. The pressure coming with these rivals will certainly intensify the competition among the banks and impel the development of Chinese Banking Industry. To some extent, the merger&acquisition of foreign investors won't always bring about serious aftermath.The most important problem is that how these domestic banks to improve them develop themselves.Chapter One is firstly dedicated to explaining the basic notion and reasons about banking merger&acquisition. Then, chapter one also includes the explanation about the merger waves of banking industry all over the world and indicates that it' time to fully open our banking industry. At the end of this chapter, the author discussed main laws and regulations and analyzed the merger styles.Chapter Two, mainly analyses the Property right of domestic commercial banks, the upper limit of stock proportion by foreign capitals, the entry of foreign strategic investors, and folk investors' participation in banking merger&acquisition.Chapter Two also discusses these respective laws and regulations on each problem,analyses the current situation and puts forward some countermeasures.Chapter Three mainly discusses the methods of operation of domestic commercial banks, the effect on unlashing universal banking on the basis of foreign investors' entry and banking supervision of our government. As is known that China has enacted a lot of laws and regulations on banking industry, all of the banks, foreign and native, should comply with these supervision policies.Chapter four mainly deals with the suggestions on the related laws and regulations of our country. Not only should we treat these banks equally, but also perfect the supervision system and increase the cooperation among three regulatory commissions so as to protect fair competition and healthy development.We do not advocate adding barrier to foreign M&A, but wish to perfect these laws, regulations and policies and guarantee that there must be laws to go by, the laws must be observed and strictly enforced, and lawbreakers must be prosecuted. We wish that native banks become stronger and elevate the position of Chinese banking industry in the world market.