Research On Business Judgment Rule Apply To Banking

Business Judgment Rule is originated in the United States case law, as a judicial rule, it protect directors based on reasonable information and rational resolution from responsibility for the company even if the resolution badly for the company and even with a disastrously consequences. The application of this rule has been continually explored. The particularity of the banking itself, makes the rule applicable in banking more into the focus of debate. Over the years, the U.S. has accumulated experience of Business Judgment Rule applies to the banking. After the financial crisis sweeping the globe, the experience highlights the research value. At the beginning of this century, China launched a joint-stock reform of commercial banks. Completed this reform, commercial banks established a corporate governance system. After the financial crisis, China's two commercial banks (ICBC & CCB) became the top commercial banks of the world, which cause much more attention. This is also put forward higher requirements to corporate governance of China's commercial banks and financial management. Business Judgment Rule applies in the banking, will help improve corporate governance and the implementation of financial control. This paper will discuss Business Judgment Rule introduce to China, especially in banking. The first part of this article describes the basic theory of Business Judgment Rule; the second part do a research on the Business Judgment Rule apply in the banking in the United States; the third part give some recommendations for the Business Judgment Rule introduced in China and the application for the banking of China.