A Study On The Legal Issues Of Financial Cooperation Between Trust And Banking In China

Since1979，China International Trust and Investment Corporation was set up，so far, the trust industry has gone through ups and downs in the course of35years.Although the " Decision on Financial System Reform " promulgated in1993, theState Council established the China’s banking, securities, insurance, trust separateoperation mode, but the negative impact of trust in our financial system has beengreater than the positive impact,with the result that Trust is equal to irrational fundraising and illegal contribution. Especially financial problems are endless in thecooperation between Trust and Bank. For example, in the famous Guangda-AnxinTrust case, when the financial products of trust loans category come into being zero ornegative income gains, the disputes on responsibility partition between Banks andTrust companies raise. Most of researches on financial cooperation between Bankand Trust previously focused on financial innovation of intermediate business of bank,legal issues, cooperation model innovation, risk control, market supervision and otheraspects. but less attention has been paid on the research of legal responsibility in thefinancial cooperation between Bank and Trust, as a result,chaoes on the responsibilitypartition between Bank and Trust arise and make the maintenance of financial orderdifficult. It is necessary to clarify the parties’ legal responsibility in the cooperationbetween Bank and Trust from the point view of legal responsibility, to provide areference for the judicial practice.Under China’s current financial separated-industry supervision model, Trust isthe only financial institution that can invest across the money market, capital marketand industry market, has a unique institutional advantages. Meanwhile, theincreasingly competitive banking sector in which "financial disintermediation"phenomenon constantly emerge, has come to realize that bank can take advantages oftrust system to cooperate with trust companies. And as for the fledgling trust industry, due to many aspects of limits such as weaker strength, narrower channels of customerresource, has also begun to seek cooperation with banks which have absoluteadvantage in such areas, and strive to play to their respective advantages and achievewin-win development.Since the launch of bank-trust cooperation in2005, the development ofbank-trust cooperation business is growing faster and faster, more and more financialproducts of the cooperation between bank and trust come into being, the scale ofcooperation between bank and trust is also becoming bigger and bigger. However,problems among these financial products exposed more and more serious. The mosttypical problem is that some banks carry out the financial cooperation business whichprovide loans for industry mainly through trust companies, thus effectivelycircumvent the various regulations and restrictions. With the increasing scale ofbank-trust cooperation, the risks which contain in the back of the capital which driftedaway from the regulations and restrictions is self-evident, so the CBRC emergencyhalt most bank-trust cooperation business in July2010.This article analyzes the legal responsibility of the parties to the currentcooperation between bank and trust just from the background above-mentioned, totry to find the legal origin of problems which exposed in the bank-trust cooperationbusiness in China, to clarify legal liability among the parties to the cooperationbetween bank and trust, finally on the basis of the aforesaid, to provide some targetedmeasures and proposals for the cooperation business of post-era of cooperationbetween bank and trust in China, to spur the cooperation between bank and trust tochange the current deformity of cooperation, instead to form a healthy and sustainableand harmonious path of cooperation between bank and trust.