The Research On Legal Prevention And Control Mechanism Of Commercial Bank Credit Risk

In today’s modern society, the commercial bank plays a very significant role in a country’s economic development. With the rapid development of economy, the commercial bank pumps blood to the economic and social development by deposit-taking, lending and other ways. Commercial banks play a vital role in continued steady and fast economic development. And in the economic development, the commercial bank acts as a medium. It works in an important and simple way of attracting savings and giving loans, in short, borrowing and lending. However, in the process of borrowing and lending, there will lead to a large number of bank foreclosures and sluggish loan problems because of a bit carelessness, namely, if its loans cannot be taken back in time, the commercial bank will endanger survival crisis. At the same time, it can produce influence on the economic society, and do harm to a country’s economic and financial security, which makes economic development unstable. As is known that economic security relate to the security of a nation. The commercial bank’s risk lies in how to avoid recycling funds difficulty, that is how to track and recycle the lending money timely and effectively, reducing the bank foreclosures and sluggish loan. Inevitably, we should make efforts to construct a solid and effective commercial bank supervision mechanism. And the key to build this kind of mechanism is to establish an effective prevention and control mechanism of commercial bank credit. Law is the most stable and effective adjustment mechanism, in which the state machine is to ensure its implementation, and the formulating and modifying of the state laws should be based on the strict and legal procedures so that there will not be a big and frequent fluctuations. Therefore, it is quite necessary for the commercial banks to seek for the effective prevention and control mechanism of bank credit in the aspects of laws and regulations. At present stage, there need to study the age characteristics of credit risk, which the commercial banks face and learn from the prevention and control of the foreign commercial bank’s legal practice, hoping to make an systematic understanding of commercial bank credit risk. Then, by way of case analysis in law practice, the readers can have a clear understanding of the commercial bank credit risk. In the end, according to the present laws and regulations relating to the commercial bank credit, there will analyze the disadvantage of existing legal system in commercial banks’credit risk avoidance.There need to conduct a comprehensive study about the bank credit risk from the perspective of jurisprudence, by using the case method, literature study, comparative research and other researching methods. And then there will put forward some opinions or ideas, which accord with the situation of society and state for the prevention and control of commercial bank credit in modern society.This paper is divided into five parts:The first part:introduction. Illustrate the research background about the prevention and control law mechanism of commercial bank credit risk in our country at new period, this topic’s research significance to our modern society, and society at home and abroad research situation of the subject, and systematically describe the research methods needed in the topic.The second part:the commercial bank credit risks and challenges in the new period. Make an definition of the commercial bank credit risk with the time development characteristics and age sign, have a comprehensive analysis of all kinds of business and fields of commercial bank credit risk in modern society, and then study the characteristics resulting in the challenges to social economy development.The third part:the necessity and theoretical basis on the legal protection of the commercial bank credit risk. This part mainly studies the characteristics of the law. Due to its unique stability, the law punishment, national protection and other characteristics, this part will systematically study law’s important role in the risk prevention and control of the commercial bank credit, and give a comprehensive theoretical arguments.The fourth part:the law practice and experience of the commercial bank credit risk control made by international society. There will conduct a comprehensive analysis of legal practice of the commercial bank credit risk controlling in the United States, Britain and Germany, and make an argument of the legal control specification about the commercial banks credit risk in the Basel Agreement, and then have a further summary in order to establish a legal prevention and control mechanism which is beneficial to our country and accords with the characteristics of our country’s economy development.The fifth part:the legal regulations of the commercial bank credit in our country and relating problems. This part will analyze some laws concerned in the aspect of our country’s commercial bank credit, reveal the practice defects by way of case and put forward the existing problems.The sixth part:the thinking and countermeasures to perfect the prevention and control mechanism of our country’s commercial bank credit risk. It mainly studies the point to perfect the prevention and control mechanism of the commercial bank credit risk in our country, comes up with some exploratory opinions in economic and legal aspects, which is based on the bank staff, basic credit management, legal tracking mechanism of bank loan, and the whole effective legal supervision mechanism, and gives some department rules and regulations and external supervision suggestions.