The Research On Consumers Protection In Personal Financial Products Of Commercial Banks In China

Because of the subprime mortgage crisis leading to global financial crisis, all thecountries have known that financial customers like a tiny hole, if they are not to beprotected well, like the hole which had not to be covered, could cause financial crisis,which may make the whole buildings collapse. It means that if there is no basis, thetaller the building, the faster it would be collapsed. Therefore, it is more important toprotect the benefit and demand of the financial customers as well as the financialorganizations, avoiding lead to damage the financial market. Nowadays, the ideologyto protect the financial customers has been placed on the agenda. However, thecustomers of Banking as well as other customers who belong to the financialcustomers are not totally protected. With services to the financial products of thecommercial bank, more and more customers lost their investment funds by manyunfair reasons before they might get benefits and these lost may not be made up orredressed. One obviously question is that the protection systems of the financialcustomers or financial sector customers are not completely built up, even if publishingseveral regulations and implement several measures. Therefore, this thesis discussChinese protection for the consumers of individual financial products of commercialbank, to discuss the law basis, to analyze the protection current situation and toimprove and perfect the protect mechanism by reference to other countries’ legislationand practice.This thesis included four chapters.The first chapter illustrates the law basis of the individual financial product of commercial bank, define the meaning of the financial product of commercial bankand its customers, analyze the relationships between the customers and the financialbanks, demonstrate the rights of the customers which includes the right to know, tofair trade, to privacy and so on. Through this chapter, the writer lays the groundworkfor the next three chapters.The second chapter analyzes the main problems on the current situations of theindividual financial product of commercial bank, including the design issue of thefinancial product, evaluation system for the customer, the damage to customers causethe form clause, information disclosure, violate the rule to sale by proxy and the Ponzischeme and so on. Besides, there are several problems on the legislations andsupervision. These all show that current measures are not efficient to protect thecustomers in banking.The third chapter illustrates the legislations and practices carried out in theforeign countries like The United States, The United Kingdom, European Union,Japan and other countries and regions, which can be used to refer to China.The fourth chapter demonstrates that how to improve and perfect the consumersof individual financial products of commercial bank thought three angles. One is topublish the Financial Customers’ Protection Law and improve the Contract Law.Another is to strengthen supervision reform which emphasize on informationdisclosure. The third is to improve the litigation system which should ask banks toundertake more responsibilities.