Research On Legal Risks Of Commercial Banks Domestic Factoring Business

In recent years,domestic factoring business developed rapidly in our country.Commercial Banks regard it as an innovative strategic business and it has played a huge role in meeting the comprehensive financial service demands of enterprises,service of micro,small and medium enterprises,service of entity economy and so on.At the same time,domestic factoring business has played a huge role in many other aspects such as promoting the income of intermediate businesses of commercial banks and improving the structure of bank management.However,with the sharp increase of business volume and the characteristic of the structure of factoring itself,potential risks have become increasingly.The 59 th rule of the “Law of Commercial Banks” is that in accordance with the relevant regulations the commercial banks should formulate the bank business rules,establish and improve the bank risk management and internal control system.Therefore,this article will analyze and study the domestic factoring legal risks and the preventive measures that commercial Banks adopt to deal with the risks.So commercial banks can better understand factoring business.To clarify the domestic factoring legal aspects of theory and practice,and hope for playing a positive role in controlling the legal risks of related domestic factoring business for commercial Banks.This paper consists of four chapters.The first chapter introduces the domestic factoring business and the whole legal environment by introducing the meaning of domestic factoring and also the type,classification,all legal relations and basic problems such as factoring legislation present situation domestic and abroad.The second chapter deeply analyzes the legal nature of domestic factoring business contract based on the practical business of commercial Banks.The third chapter focuses on the basic and core legal risk of factoring.The related problems in assignment of accounts receivable are analyzed in detail.Due to the assignment of accounts receivable involves a lot of legal theory and practice,this chapter has carried on the detailed discussion from many aspects such as the objects of assignment of accounts receivable,the internal effectiveness of the assignment of accounts receivable between the factoring applicants and the bank,the external effectiveness of the assignment of accounts receivable to the debtors,the external effectiveness of the assignment of accounts receivable to the third party,the transfer modes of the assignment of accounts receivable and so on.Meanwhile,this chapter analyzes the special legal issues of domestic factoring business.The fourth chapter expounds the solutions to the legal risk problems for the first few chapters and gives out the improvement measures and suggestions to the related issues that commercial Banks need to focus on.