The Analysis Of Legal Risk About Commercial Bank Credit Operation By Case

According to the New Basel Capital Accord proposed by the Basle Committee on Banking Supervision in June 2004, legal risks, as a new type of operational risks, is introduced by the Committee into the capital regulatory framework for the first time, and relevant banks are required to prepare corresponding capital for such risks. It can be seen from this that the New Basel Capital Accord sets out higher requirements for commercial banks of different countries to assess and control legal risks. As the principal business and a major profit source of commercial banks, credit operations are confronted with multiple legal risks coming from the bank itself, the clients and change of legal environments, and it is therefore very important and urgent to strengthen the measurement and management of the legal risks concerning credit operations. However, the commercial banks in China have failed to pay enough attention to the legal risks and the measures they take to control and mitigate the risks are simple and inflexible, which cannot satisfy the demand for risk control of modern commercial banks.This article, beginning with the analysis of the case which is about the dissension of the Shanghai Nonferrous Metal material Company's loan contract, analyzed the disputed focus of the case, which educed a series of legal risk problems about commercial bank credit operation. Firstly, this article discussed the concepts and the scopes of the legal risks about commercial bank credit operations. To strengthen the concepts of the legal risk about commercial bank credit operations and to dissertate it exactly, this article compared some concepts which is similar to legal risks about commercial bank credit operation, just as operation risk, litigation risk and risk of complying with rules. Secondly, this article, combining with legal documents and the current credit products offered by China's commercial banks, analyzed the possible legal risks about formulation of contracts, guarantee methods, management of creditor's rights and relevant legal remedies and, meanwhile, illustrates the special legal risks of credit products faced by individuals, corporations and international business separately. Lastly, considering construction of risk control culture, plan for organization system and mechanism, abundant and qualified human resources, this text also proposes remedial measures for the establishment of an effective management system for the legal risks threatening credit operations of commercial banks.The author hope, by discussing the typical case of the legal risks about commercial bank credit operations and combining the advanced theories of commercial banks and guardian on abroad and at home with the credit products of interior commercial banks, he can analyze the legal risks about commercial bank credit operations by the numbers. And by learning the advanced conception and technology, to measure and keep the legal risk about credit operations away, of international commercial banks, the author hope to constitute a seemly organization system and mechanism to our country's practice, which can control and keep the legal risk about credit operations away. My pygmy effort is intended by means of this text to help improve the management of legal risks for the credit operations of commercial banks.