Chinese Banks To Participate In The International Syndicated Loan Legal Issues

After more than 40 years development, international syndicated loan has become one of the most competitive business in commercial banks and played an indispensable role in the international capital market. Compared with foreign developed countries, the progress of Chinese-funded commercial banks' participation into international syndicated loan is quite slow, lagging far behind the development of international market. Therefore, it is crucially meaningful to promote the development of syndicated loan in Chinese-funded commercial banks, for enhancement of the profitability as well as anti-risk capability in financial institutions such as commercial banks.Apart from the introduction and the postscript, the text of the paper, containing almost 40,000 Chinese characters, is divided into four chapters.The article first gives a comprehensive summary on the basic theory of international syndicated loans by explaining the development of international capital market and international syndicated loan, defining the concept of international syndicated loan, illustrating the legal relation involved, introducing main procedure in covenanting of international syndicated loan agreement and analyzing the security system design therein.Chapter II holds an analysis on the international private law issues involved in international syndicated loan. In the part of legal application on international syndicated loan agreement, it introduces the applicable law and the capacity of covenanting party, discusses the choice of applicable law to the loan agreement and the guarantee agreement respectively. In the end, the chapter analyzes legal dispute settlement to the conflict of the international syndicated loan.The Chapter III of the article is the description on current state of Chinese-funded commercial banks' participation in international syndicated loans and the problems in China' s existing legal system. This part first expatiates the development and problems in Chinese-funded commercial banks' participation in international syndicated loan, then analyzes the main related laws, regulations and stipulations and their deficiency.The Chapter IV of the article is the coping strategies and risk control measures for Chinese-funded commercial banks to participate in international syndicated loans. The chapter analyzes the worth and value of speeding up the pace with international syndicated loans by Chinese-funded commercial banks, on which basis, the chapter proposes legal coping strategy to mitigate risks involved in international syndicated loans. Combined with the practice of our country, risk control measures for the Chinese-funded commercial banks to international syndicated loans are also mentioned and explored in this chapter.