Defects Of China's Commercial Banks, Credit System And Legal Measures

Credit institution is the basis of the money market development. In most of capitalist countries, a general credit institution has done a well protection to the development of the money market and enhanced the development of economy. In our country there are many problems in the banking credit institution, banking credit restricted by the property system, the non-performing loans, the governing structure and other factors, which will do harm to the continuous rapid development of the national economy in long term.The reasons resulting in the above-mentioned situations of our banking credit are complicated: at first, the basic reason is that the mature market economy system is not yet established in our nation. The legislation and regulation on our credit is relatively backward. Furthermore, the credit administrative system is not improved and complete. At last, the view of morality, in some extent, exerts some effect on the credit situation.In order to improve the credit institution of the state-owned commercial banks, it is necessary to reform the property system, improve the relationship between the banks and the government, and the relationship between the banks and the enterprises, solve the noa-performing loans, perfect the governing structure and innovate the muaging system, which can help the state-owned commercial banks to deal with the compatition successfully in the globalization and unity of the international economy.