Research On Legal Regulation Of Listed Banks' Affiliated Transaction

With the Financial Industry of China being developing rapidly, many commercial banks have gone on the market after the reformation of share-holding system. And the Financial Industry of China is stepping into the convergent financial services era. Corresponding to this background, to control risks of listed banks is becoming an important research topic. The affiliated transaction is quite popular among the listed banks. Although one of the advantages of affiliated transaction is it reduces the business cost. Simultaneously it enhances the congestion of risks of listed banks and it may also trigger the financial crisis more seriously. So the legal regulation of affiliated transaction has become an important topic to control the risk.This article launches from the basic definition of affiliated transaction which consist of its subjects, characteristics and classification. Then the writer analyzed the negative influence with a case of affiliated transaction from the legal values: security, equity and efficiency. The negative influence includes the crisis mechanism, infringement of the involved subjects' interest and the demolishment for the market. Then it concludes in the necessity to regulate affiliated transactions.In the second chapter of the article the writer introduces the current main legal principles and systems for the supervision of listed banks' affiliated transaction home and abroad. They acquire legal effect from the arrangement of right and interest among the involved subjects which constitute the structure of modern company and they are being proved efficient systems in the practical application.The third chapter of this article focuses on the introduction of current legal system for our country and gives out the writer's comments. It thinks the mainly problems of the current legal system includes incoherency of the various legal documents, some of the laws are too simple to apply and the existing faults of some regulations. At the same time the writer doesn't thinks to some extent the current regulated system can be adapt itself to the convergent financial services well.Based on the discussion in above chapters, in the last chapter the writer gives out the legislation suggestions. It thinks that the company law and the security law should be amended to enhance their effectiveness for the regulation of listed banks' affiliated transaction. Then it lays out the practical scheme to improve the information disclosure system, supervision regulations under the convergent financial services era. At the end of the article, the writer thinks the company governing structure of modern listed bank should be reconstructed by perfecting the independent director System and the Affiliated Transaction Controlling Committee to strengthen legal supervision for listed banks' affiliated transaction.