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The Discussion Of Legal Risk Control Of Personal Finance Products In Commercial Bank

Posted on:2016-05-15Degree:MasterType:Thesis
Country:ChinaCandidate:Y T ZouFull Text:PDF
GTID:2296330461459004Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
With the development of economy and the rapid growth of personal wealth, there are more and more financial services we can find in financial institutions today. Personal finance products in commercial banks belong to comprehensive personal finance business that commercial banks sell finance products to clients and invest the raising-funds, sharing the gains and losses in accordance with the provisions between banks and clients. As a kind of new intermediate businesses, personal finance products have become an important profit-growth point, promoting the development of financial innovation business and financial market in China. At the same time, banks face a lot of risk in carrying out personal financial products business, especially the legal risk, which has become the bottleneck in the development of commercial banks.The first part fcous on the definition of the legal risk of personal finance products in order to lay theoretical basis for the typed analysis of legal risk. At present, the academia have different definitions of the legal risk of personal finance products. Some scholars think that, legal risk refers to the legal defects of the contract and can not be fulfilled or the contract exist ambiguity and because of the changes in laws, regulations, the bank will suffer the risk of legal dispute. Some scholars also defines the legal risk as the risk of legal action, executed by the law, or can’t realize legal right. Through the analysis, the author will define the legal risk from three aspects: first, to bear the unfavorable legal consequences because of the internal problems of laws and regulations; Second, legal responsibility such as breach the contract and tort caused by the drawbacks of market transaction behavior; Third, the adverse legal consequences caused by the lack of internal control of commercial bank. Through analysis, in the process of finance products’ operation there are five links that face potential legal risk and they are the market-admittance, the sale, the information-disclosure, the operation of raising-funds and the innovation of finance products. On this basis, this paper will analysis the potential legal risks of personal finance products from these five aspects.The second part mainly discusses the causes of legal risk of personal finance products. Exploration of the legal risk cannot cover every aspect, how to carry on the induction analysis with limited words become a difficult problem in writing this paper. I think, first of all, the legal definition of the nature of personal finance business is not clrear and it increases the difficulty of application of the law in legal dispute. Second, the inadequate disclosure of information of commercial bank not only increases the unequality between banks and investors, but also makes it hard to guarantee the investors’ right to know the information about the finance products. Third, the background of current finance separation system, the separate regulation and product mixed operation status quo of the derailment all hinder the development of personal finance products business.In the third part of the paper, after figuring out the legislative status quo of personal finance products, we can see that the current legislative level is low and inconsistent. Commercial Bank law is the basic legal norms of commercial banks, however, it lacks relevant rules of personal finance products. The current basic guidelines of personal finance products is Interim Measures For Commercial Bank Personal Financing Business, issued by Banking Regulatory Commission of China, however, its legal status is also low. In addition, the author thinks that, there exists legislation blank in the area of personal finance products. Fitst is not clear whether income tax of individual personal finance products; Second, lack of credit system of personal finance products; Third is the lack of rules about the civil liability to pay compensation to investors. There is no doubt that the blank mentiond above has become a stumbling block for the further development of commercial banks personal finance products business and also plants hidden danger for the legal risk.The fourth part discusses the construction of legal risk control system of personal finance products and as the sublimation of the paper, the author makes the demostration from three aspects., they are the legislation, bank legal risk internal control mechanism construction, legal supervision. In the level of legislative, the author suggests that the personal finance products should be involved into the Commercial Bank Law and determine the legal nature according to different types of financial products respectively. On this basis, clear the way and the scope of information disclosure about personal finance products. In the level of construction of internal control mechanism of legal risk in commercial bank, the author thinks that it can be strengthen from five aspects: formulate internal rules and regulations, strengthen risk control of the sales process risk warning obligations, investors complaint mechanism, strengthening the staff compliance management of individual wealth management products, and attention to the function of the legal department. In the level of legal regulatory, the coordination and cooperation between different regulators should be strengthen. At the same time, we should not only make transition to functional regulation gradually, but also make full use of the role of Banking Association as self-regulatory organizations.
Keywords/Search Tags:commercial bank, personal finance products, legal risk, information disclosure
PDF Full Text Request
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