Study Of Policy Problems Of The Banking Legislation

In the year of 1994, in order to promote the reform of four state-owned financial banks and professionalize the policy business, China has established three policy banks, that is, China Development Bank, China Export & Import Bank and China Agriculture Bank. Since they have been founded, these three banks have played an important role in the area of state construction, international trade and the development of agriculture as well as the development of the country. And however, these banks have confronted with a large quantity of troubles, which is the blank of law, ambiguous legal orientation, the lack of continuity, the shortage of fund, unsound corporation regulation, and the risk of self-control.At present, the reform of policy banks has been highly concerned by the Party and the government. It has been clearly announced in the Eleventh Five-Year Plan that 'It is important to clarify the legal orientation of policy banks, and improve the mechanism of self-restriction, risk-regulation and risk-compensation'. In a word, the legal environment of making policy banks law has matured.As long as our policy banks law is very simple and some distinct opinions have existed, it is impossible to make a systematic law overnight. This article aims at discussing the legal principles of policy banks, as well as the legal orientation, and the mechanism of supervision in four parts apart from the foreword.The first part introduces the policy banks law in general. Firstly, it summarizes the features and function of policy banks, such as the function of credit intermediary, setting examples, encouraging other finance and getting over the shortcoming of disorder of the market as well as the government. Secondly, it recalls the history of the development of policy banks and the theory of Keynesianism. During the history and present state of policy banks abroad, the essay enlightens how to make our policy banks law reasonably. The second part mainly discusses the present state and problems of policy banks law in China. According to the traits of policy banks, the article analyses some shortcomings of present policy banks law, which is the lag and simplicity of law, the indistinct relation between policy banks and the government, or the financial banks.The third part depicts the law of KFW,DBJ and KDB. During the comparison of these banks, the essay concludes three traits of policy banks law abroad, which is, 'making law in advance', 'one law for one bank', and 'the law is not only on the organization but also on the business'.The fourth part, as the key section of this article, has set forth some relative advice in five aspects based on the three parts above,The first aspect analyses two distinctive opinions on the format of policy banks law, one of which is making a unit law above some relative law. The other opinion is making separate laws. The essay tries to find a proper way to making policy banks law according to its own traits and its trend, making a conclusion that we should make law separately.The second aspect analyses the principles of policy banks law and concludes that policy banks law should follow some principles such as government leading, complementary and neutral, executing by itself, profit to some extent, operating following principles and law.The third aspect proposes the legal status of policy banks law. At first, it depicts the theory and some relative rules, and then, it describes the enforcement of policy banks law abroad. The essay argues that, the policy banks law should be considered as a dependent corporation according to the law of Korea, German and Japan as well as the state in China. It suggests that the policy banks law should belong to public corporation based on the analysis of the classification of companies, as well as the goal,essence and function of policy banks. At the same time, the essay points that, to confirm the status of policy banks, we should make certain the relation between policy banks and the government, policy banks and the People's Bank of China, policy banks and the commercial banks.The fourth aspect aims at proposing advice on the corporation organization from two parts. It suggests that we should build a multiple share hold formation in the inner part, and a stereoscopic policy banks system in the outer part. The article advises that we should emphasize not only efficiency but also profit in the example of the American style.The fifth aspect discusses how to improve the mechanism of supervision. It advises that we should regulate the resource of the fund, including fiscal fund,the refinancing from the People's Bank of China, the fund of social security, and the commercial bond guaranteed by the government. The article points that we should make use of foreign capital and control the way of usage to increase the profit by the government. It also suggests that a benign risk-defense should be built including the mechanism of compensation, risk-defense and the upgrading environment outward.The article has follows a normal way of writing, which is suggesting, analyzing issues, and making reasonable conclusions. It discusses the existing problems of policy banks law during the description of the history, background, state and the trend of policy banks law. Nevertheless, it points a way for making policy banks law in the comparison of policy banks law of other countries. In addition, it depicts a basic organization of policy banks law.