Research On Legal Protection System Against Financial Risks Of Banks In Republic Of China

As the financial unit in the market economy, a bank's operation is always accompanied with all kinds of risks and crises. Taking the risks and gaining the benefit is obviously the economic principle, which is also the significant point of a bank that needs to resist or avoid the risks from market economy, for that it is a vital element not only for one country's economy, but also for the whole world's situation.This article takes the history research as a principle line, and the origin of the modern bank of China as a start point, Using view point of Historical materialism to do a research over the legal system of bank of modern China during the period of the republic, and based on this to do a further research over the legal protection against financial risk. This article is to make a historical research over the subject of legal protection against financial risk and to put out some advices on the same subject of present China.This article contains six main parts which are preamble, the first chapter, the second chapter, the third chapter, the fourth chapter and conclusion.In the part of preamble, the article gives a brief introduction of research results of several scholars on the subject of legal system of bank and legal protection against financial risk, and a brief introduction on the origin and development of modern bank of China. Then it points out that the legal system of bank was well developed and that it makes sense to do research over the subject of legal protection against financial risk, which is that we could learn from the history.In the chapter one, the article divides modern China(from 1911-1949)into two periods, which are the period of the Northern Warlord government, and the period of Nanjing National Government, and introduces the situation of banking development and legislation concerned bank, and points out that in the two periods, especially in the second one, the theories and legislation took the advantage of bank-boom and got a well development. Many measures and legal advice on legal protection against financial risk have referential meaning for banks today, which have suffered a lot from the economic crisis. Further, the chapter one makes an analysis on the reasons for financial risks occurred in modern China, and points out the objectivity and universality, for that even today, banks also face the risks that happened in the history. The chapter two expounds the inner control system of legal protection against financial risks in details, including the structure of a bank, human resource control, and financial management, and the branch bank system which is the structure of banks'organization. All these points support the significance of inner control for the resistance of financial risks. The third chapter stands at the point of outside of a bank, focusing on the legal and administrative supervision over the bank system. This chapter contains two parts. One is that the supervision over the bank system, including the permission into market and control of transaction. The other is that the union of banks'supervision, including restrictions and protections on banks' activities. The fourth chapter discusses the rules and laws of bank in period of modern China, which has the same characters to the banks of present time. So it could never be ignored to learn from history. And based on this result, this article gives some advice on the legal protection against financial risks.The last part gives the conclusion that we can learn from the history of Republic of China and to make a completion on the legal protection against financial risks for banks today.