On Legislations Of Overseas Loan Under Domestic Guarantee In China

Since the 21 st century,China's economy has been steadily improving and the global economic ties are increasingly close,which prompt Chinese enterprises to expand overseas markets.Influenced by China's foreign exchange policy control,cross-border transfer of funds in China are subject to many restrictions.In order to satisfy the needs of overseas financing of domestic enterprises,China loosed the provisions of external financing step by step in 2014 from the level of legal policy mainly by the means of overseas loan under domestic guarantee,and the business of overseas loan under domestic guarantee has ushered in a spurt of development.However,there are few studies on overseas loan under domestic guarantee in China,and the development of business can not be separated from the protection of the legal system.Otherwise,many risks and problems will occur.In this paper,starting from the concept of overseas loan under domestic guarantee,the author describes the three legal relationships of overseas loan under domestic guarantee business.Combining with the legislative development and business status of overseas loan under domestic guarantee in China,the author puts forward some compliance measures and supervision suggestions to improve the overseas loan under domestic guarantee business,and finally puts forward the prospect of the future trend of overseas loan under domestic guarantee business.In the first chapter,the author explains the definition of overseas loan under domestic guarantee,analyses the causes of overseas loan under domestic guarantee,demonstrates that overseas loan under domestic guarantee is not only a cross-border guarantee,but also a cross-border loan arrangement under the foreign exchange management system of China from the aspect of its attribute,introduces that the vital carriers of it are letters of guarantees and standby letters of credit,and compares the similar concepts of overseas loan under domestic guarantee and external credit guarantee.In the second chapter,the author studies the legal structure of overseas loan under domestic guarantee,and reveals that there are three layers of legal relationship of it according to its order of importance.The legal relationship of loan is the base,the legal relationship of guarantee is the core and the legal relationship of anti-guarantee is the guarantee.By analyzing it through examples,the paper discusses the validity of its legal relationship.In the third chapter,the author explains the current risks and legal problems of business of overseas loan under domestic guarantee in China.The paper points out that although the development of it is hot,the risks involved need to be alerted.For domestic banks,there are eight risk points,such as policy risk,operational risk,credit risk,exchange rate risk,interest rate risk,arbitrage risk and performance risk at the macro level of the nation.At the same time,some legal problems in its business are discussed,including the conflict between two supervision laws,the use of comfort letters and the guarantee ability of domestic people.In addition,this paper briefly summarizes the legislative development and regulatory status quo of the business,and analyzes the current regulatory focus and punishment methods through the cases of violations of overseas loan under domestic guarantee.In the fourth chapter,the author points out some advices for the improvement of business of overseas loan under domestic guarantee in our country.The suggestions are put forward from three aspects: legal norms,risk prevention and control,and compliance.In terms of legal norms,it is suggested to amend the relevant content of No.6 article of the Judicial Interpretation of Guarantee Law to correctly guide the court trial.In terms of compliance,commercial Banks should improve compliance procedures,improve risk awareness and implement the "three principles of business development".In terms of risk prevention and control,relevant functional departments in China should make clear the subjects and objects of supervision,and grasp the supervision objectives so as to improve the supervision means in a targeted way.In summary,it can be expected that the practitioners and supervision departments of the overseas loan under domestic guarantee will enhance their understanding and research on it,and promote it to carry on its contribution to the national policy of " the Belt and Road " of our country.