Legal Analysis Of Financial Products Pledge

Bank financial products are financial services products specialized in a wide range of wealth management for the buyers of financial produ cts provided by the ba nks. Along with the further deepening of the reform in the financial field of our countr y as well as the accelerated pace of the m arket-oriented interest rate reform, the ordinary people have a higher awareness of financial products. Meanwhile, the bank also vigorously develop and promote the financial products. The joint effo rt accelerates developm ent of the financial products of our banks, which offers not only a major source of profit for banks, but also more benefits than the deposit for the purchase of financial products. With the development of the bank financial products, there’s a growing demand for the financial services, and various business innovations emerge in an endless stream, among which the pledge financing business is a good illustration for that. However, due to the lack of laws and regulations of the corresponding financial products, which does not clearly defined that the bank financial products may be pledged. Moreover, th e existing laws and regulations in the pledge of ri ghts provisions are too sim ple to adapt to the demand of the new business of pledge on basis of curren t economic conditions. Therefore, there is great compliance risk of legitimacy of the right of pledge business. Thus, these uncertainties that the banks are faced with have become an obstacle to the the steady development of the financial industry. If the bank financial products can be legally pledged, not only can flow of fund be increased, but the value of bank financial products will also be enriched. In that case, financial innovation will be positively guided.This paper has carried on the analysis from the following four aspects. The first part focus on the definition and classification of bank financial products from the source. The second part is to analyze the legal relationship and the properties of different financial products according to the capital operations of different types of financial products and the trading rights and obligations between the party transactions. The third part summarizes the present situation and problem s of China finance product pledge. The fourth part puts forward some suggestion on the financial product pledge system.