The Legal Study Of Supervising To List Commercial Bank Credit Risk

The economy of a nation is tightly related to the performance of its financial industry. Also, the financial system is a vital part of the modern economy. Except from being the very core of our modern market economy, banking is also a major proportion of the financial industry in our country. The development of banking could influence the development of economy. Public commercial banks, as a critical part of our banking industry, play a decisive role in our economy. Therefore, the stability of public commercial banks is associated with the stability of the whole society and its economy.In our country, public commercial banks predominate in the banking industry. They are also highly related with the development of corporations and people's life. Since credit operation is special, the risk it is associated with is the major and fundamental risk that public commercial banks need to take. As banking itself being a highly risky business, the integration with the capital market may increase the risk. However we must take the benefit of being involved in the capital market into consideration. Therefore it is crucial to prevent the risk by legal means and build up a risk-preventing system by supervising. This is well concerned by researchers around the world. Relevant legal issues in preventing risks of public commercial banks have been investigated deeply, especially from the view of the legal system. Thoughts and advices have also been made on constructing a supervisory mechanism in preventing such risks.