The Legal Regulation Over Operational Risk Of Our Country Commercial Bank

The operational risk of modern commercial bank has great harm, and is highly systematic and infectious, which may cause huge losses to the social wealth and the stability of the economy. Nowadays, it is not enough to prevent the serious harm, relying solely on the criminal law, civil law and other relevant legal remedies in hindsight. Prevention of operational risk in commercial banks, has exceeded the scope of micro level of enterprise management, should be raised to the height of the financial legal supervision norms. China is now in a special period of economic and social transition, commercial banks have great defects in corporate management and internal control. The lack of supervision on the agent, lack of control to the senior management could cause a series of problems.Because of the lack of supervision and short-term interests, the internal energy of operational risk management in commercial banks is not enough or thorough. The management needs the external regulations,,which could play the role of legal system and maintain the economic and financial stability.The operational risk of commercial bankshas a long history, but the relevant research and regulation for it has just started about ten years ago. At present, the legal supervision of operational risk is still not perfect. Both the international financial community and domestic banks are in an actively-exploring stage. There are still many problems of legal supervision over operation risk of commercial bank in China. First, the legal normative documents of operational risk on the basis of their own needs further improvement, its effectiveness and execution needs to be further improved. Second, the commercial banks in China do not own the perfect corporate governance and internal control. Third,the lack of legal supervision of operational risk in Chinese commercial banks causes loopholes. Forth, the commercial banks in China is in lack of legal protection, the rights and interests of the commercial bank are not secure.The problems of operational risk management in Chinese commercial banks need to be solved over the height of legal supervision, which could be put forward to four aspects:First, to start from the source, to improve the legal norms and supervision of operational risk management. Second, to combine the internal and external supervision together of commercial banks. Third, to confirm the procedure of bad-debt clarification of commercial banks. Fourth, to protect the legal interests of commercial banks. In general, the supervision needs to be well-controlled and the regulation and supervision of operational risk should be strengthened, which is aim to build a system fit to our present circumstance of operational risk in Chinese commercial banks.