Legal Regulation Of The Risks Of Private Banks Of The Republic

It is difficult for the small and medium-sized enterprises to get financing. So, they just can turn to the private lending."The Wu Ying case" happened in2007, pushes the folk lending, relative to the enormous folk lending, the "Wu Ying case" is just the tip of the iceberg, the hidden financial risk has appeared, in order to defuse financial risks, the China banking regulatory commission in2006, allowed private capital holding the folk of village Banks, setting up the laws of the folk lending system. In July2013,the state council promulgated "about financial support economic restructuring and transformation and upgrading of guidance",what is more, approval of the third plenary session of the communist party of China (18"on comprehensively deepen the reform of the central committee of the communist party of certain major issue decision"),both of them put forward to open a private bank under the premise of more regulation. Affected by policy, the domestic powerful private companies apply for establishing a private bank. But the development of private Banks faces a number of risks, how to prevent these risks is one of the important problems which we currently face.Private bank is not a new thing which actually already existed in the history of our country, the private bank in the period of the republic of China is controlled by the private, and has achieved good results, the Jin Cheng bank, Shanghai commercial savings bank is a typical representative of the private Banks. Their success also proved the ability of folk capital holding bank management ability and controlling the risk.The property right structure, personnel mechanism, internal controlling mechanism, risk prevention and controlling measures of the private bank of the republic of China provides an important reference significance for today’s development of village Banks in our country.The paper uses the historical research as the main line and puts the private bank of the republic of China in the history of our country as the research target. Though probing into its development course, property right structure, employing mechanism, internal control mechanism, risk prevention, etc. gives some reference value of the current development of village Banks in China. This paper has five chapters as following:The first chapter analyzes the development of the private bank of the republic of China, and role in promoting the economic development of China at that time. First of all, the paper makes a brief introduction about the development of the private bank of the republic of China, analyzing the emergence, preliminary development, peak and decline. Second, the paper further introduces the private bank of the republic of China for the promotion of economic development during the period of the republic of China and their lending to industry, agriculture has promoted the development of industry and agriculture for our country.The second chapter analyzes the risk of the private bank of the republic of China.The risks mainly include the public trust risk, insider control risk, lack of specialization operation risk, credit risk, etc.The third chapter analyzes in detail the republic of China private of preventing Banks risks, internal related system. It mainly implements the separation of ownership and management rights, applies a system of general manager responsibility system, business management, personnel management system.The fourth chapter analyzes the republic of China private of preventing Banks risks, external related system. External mainly is the republic of China government’s regulation of private Banks, and bank trade association for the promotion of bank risk prevention.Chapter5analyzes the private bank in risk prevention legal system of the republic of China on the significance of the development of village Banks in our country. It mainly embodied in two aspects, the construction of village Banks internal system and external supervision of the construction. Then the author puts forward his thoughts of the present development of village bank in risk prevention legal system.