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Study Of The Legal Issues Of Subordinated Debt Of Commercial Banks In China

Posted on:2009-05-02Degree:MasterType:Thesis
Country:ChinaCandidate:P LuFull Text:PDF
GTID:2206360242991620Subject:Economic Law
Abstract/Summary:PDF Full Text Request
As a tool to supplement capital, the subordinated debt has a great demanded market in our country. Since the November of 2003, the 'Notice on Subordinated Term Debts Reckoned In the Supplementary Capital', the 'Regulation Governing Capital Adequacy of Commercial Banks' and the 'Rules on the Issuance of Subordinated Bonds by Commercial Banks' have successively promulgated which make key functions to establish the subordinated debt market. But because of the legislation and practice in subordinated debt is in the initial phase, the legal environment is not in sound and many legal problems exist. At the same time, the relative shortage in study of the legal system on subordinated debt leads to the theoretical and practical significance of studying the legal problems in subordinated debts by commercial banks. So to make study on subordinated debts by commercial banks are important both in practice and theory.In our country, the subordinated debts include Subordinated Term Debts and Subordinated Bonds. The primary function of them is to supplement capital. But in foreign theories proved the subordinated debt has regulatory function and optimizing corporate governance function. In this study I emphasize the legal problems on subordinated debts in our country though the method of determining the nature and criterion. In our country, the effectiveness of the legal documents which are as the basis of subordinated debt is comparatively low and this leads to oppugn to the subordinated debt's validity and effectiveness. And the characteristic of subordinate bring many problems to Contract Law and Bankruptcy Law. In addition, the present environment is not perfect, existing many problems which include the nonstandard conduct in issuing, mutual-holding, information disclosure, government recessive worthiness.To solve these problems is not in one day. We must not only pay attention to our national condition but also adopt experience from foreign countries which the subordinated debt has grown fully so as to improve the environment of subordinated debt and exert their functions.
Keywords/Search Tags:subordinated debt, supplement capital, supervision debt, corporation governance, regulation
PDF Full Text Request
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