The Legal Supervision Of Trust-bank Financing Cooperation Business

Trust-Bank financing cooperation business is an agreement between bank and trust company which develop financing cooperation. Trust company manager, utilize and dispose the money as a trustee according to the trust contract. Since 2006, trust-bank financing cooperation business grows vigorously in china. However, it became a regulatory arbitrage to avoid financial supervision. Since 2009, financial supervision on the trust-bank financing cooperation business are issued frequently. But there are many new models to avoid supervision. SOT is short for security of trust. It is a loan which is supplied by banks, securities companies and trust companies. It is a new model of trust-bank financing cooperation business. The paper is aimed at deep reflection on the problems of financial supervision through reading supervision history. The problems are as follows: the legal nature of trust-bank financing cooperation business, the legal risks and problems on the supervision. As for these problems, some effective legal suggestions are raised. Here is the structure:In the first chapter SOT and its legal structure are introduced as the starting point. The nature of the legal relationships between every participants still have different theories. At the same time, we must have to point out that there are legal risks in the SOT. It is very important to enhance supervision of trust-bank financing cooperation business because it is regulatory arbitrage.In the second chapter, we mainly talk about the supervision history and current situation of trust-bank financing cooperation business. Different laws and administrative supervision documents are comparatively analyzed. There are three problems in the supervision of trust-bank financing cooperation business.In the final chapter the paper carries out a systematic study on supervision problems in order to improve the regulatory measures. We should enhance the investors protection and improve the regulatory system on the trust-bank financing cooperation business. Institutional regulation cannot accommodate to the development of financial market. Therefore, there is still a long way to go for functional regulation. We should improve supervision coordination mechanism and The law should be the foundation of the financial market.