Research On Legal Issues Of Commercial Bank Entrusted Loan Business

Entrusted loan business of commercial banks develops rapidly in recent years, and it provides a good way for the effective use of social idle funds. Commercial banks do not assume any loan risk and responsibility. They are responsible for issuing to monitor the use, assisting in the recovery, charging a fee and providing a range of regulated financial services. Capital abundant side acts to bear all the risks of loans. There are imperfections in the entrusted loan business laws and regulations, however, the judicial practice is not conducive to the healthy and orderly development of lending business in commercial banks.This article is divided into three parts:In the first part, the author gives basic definition of commissioned loan business of commercial banks, describes loan business concepts and classification.By comparison with the related concept of self-loans, trust loans, drawn commissioned the legal characteristics of the loan business,and analyzes the entrusted loan business on the basis of the legal nature that it is an indirect agent. Then the author clarifies the rights and obligations of the parties in entrusted loan business and the significance of the loan business.In the second part, the author puts forward to the present situation of legislation in entrusted loan business of Chinese commercial banks. This section first lists the relevant laws and regulations of commercial bank lending:"Contract Law","Commercial Bank Law, judicial interpretations and departmental rules and regulations of relevant laws and regulations. On this basis, the author analyzes legal issues that exist in the entrusted loan business focus from the five aspects. The responsibility is not clear when the borrower fails to return the loan. The problem is the entrusted loan guarantee. The provisions of the enterprise and guarantor of the loan contract are not intact. There is not a sound internal control mechanism in commercial banks. The last one is external supervision.In the last part, the author gives some corresponding countermeasures and suggestions on the basis of legal issues that exist in entrusted loan business practices of China’s commercial banks. Recognizing the responsibility of the trustee when he is in favor of the claim or not. On the effectiveness of the entrusted loan companies signed a contract with the sponsor, we can determine the effectiveness of the guarantee contractfrom the tripartite agreement and there is no agreement of both cases. Entrusted with commercial banks do not actively advocate the rights for the guarantee contract, the client can exercise the right to intervene to protect their legitimate rights and interests. We need to set conditions of borrower strictly, standardize business operations and enhance product flow to improve the collection of commissioned loan business. We need to grasp compliance, not to advance funds, and improve the accountability system to improve the commercial banks entrusted loan business with internal control. The last one is to improve the means of supervision and standardize the information disclosure of the contents.