Research On The Legal Relationship Of Bill Discounting From The Perspective Of Bank Regulation

According to the current Law of Bill,there is no clear definition for the legal relationship created between the involved parties.Organizations and relevant bodies within the banking industry such as Bank of China,the Banking Regulatory Commission and the banking self-regulatory organizations are reluctant to enact relevant regulations and legislation.Some departments rather define it as a sort of lending,while some others refer it as a trade or an exchange of rights of bills,some think it should be considered as both.Although the relevant polices differs in the current practice,the regulatory department fundamentally manages the discount bills as mortgages,and defines the legal relationship between the discount line and bill holders as the relationship between borrowers.The definitions given by the regulatory departments are not unified and accurate,resulting in adverse market selection.Consequently,the responsibilities of auditing and reviewing trading background during the practice are allocated unevenly and unreasonably.Additionally,risk prevention measures are not taken properly in a timely fashion.By elaborating the current available provisions,legal definitions and regulation made by of the regulatory department on the legal relationship of the bill discounting,this thesis summarizes the differences between the relevant regulations and analyzes the impacts on the market of bills created by the different definition among different bodies.Basing on the business procedures of the bills,this paper also analyzes the rationality and drawbacks of the two different perspectives of the relationship between the loans and the relationship between the rights of the negotiable instruments.Therefore,to further analyzes the roles of the commercial bank in the process of discounting the bills and the legal relationship occurred.Finally,the nature of the legal relationship of the discounted bills is redefined.On this basis,this paper will propose some suggestions to balance the shared responsibilities in reviewing and risk takings between issue banks and acceptance banks during the process of commercial bill business,as well as to fight against the surging problems of trading with absence of the background checks.Only through those measures,can the government promote a healthy trading environment for the bill market by avoiding trading without background checks from the roots.In addition to the introduction and conclusion,this paper is divided into four chapters:The first chapter consists of two parts.The first part mainly introduces the business process of the bank acceptance bill,analyzes the legal status of each bodies and the requirements made by the regulatory departments in the process of acceptance bills discounted bills.The second part is to summarize the the relevant polices on legal relationship in discounted bills explained by legislation,judicial interpretation,the People's Bank,the CBRC,and the banking industry self-discipline organizations from three different levels.In the analysis of the views of the CBRC,this paper also cited the case decided by the CBRC and its dispatched offices to analyze the main points of view and similarities and differences between the regulatory authorities and the legal relationship between the discounted bills.The second chapter is divided into three parts.The first part analyzes the reasons why the current regulatory authorities hold different views for the legal relations in discounted bills,and potential problems caused due to the situation.The second part introduces the two main views of the legal relationship with the bill from regulation department's perspectives,which includes the relationship of borrowing and lending,and the relationship of selling and buying,as well as the demerits of each views.The third part analyzes the rationality of the discounted loan relationship and the trading relationship.The third chapter is from the regulatory point of view,to hypothetically put the discounted bills in the entire process of banks' acceptance bills,in order to further illustrate the undermined problems for the definition given by regulatory for the legal relationships in terms of the discounted bills,also to redefine redefine the nature of the legal relationship in process of bill acceptance,as well as in the process of discounting bills.This paper reveals that bill discounting creates both buying and selling relationships,as well as lending and borrowing relationships in terms of legal perspective.Specifically,meaning the buying and selling of rights of bills between discounting banks and bill holders;The lending and borrowing relationships between accepting banks and borrowing relationships between accepting banks and issuers.The fourth chapter is based on the clarification of the legal relationship between the discounted bills,giving specific suggestions to rationalize the legal relationship between the parties from the perspective of bank regulation,in order to strengthen the acceptance of the line to fulfill the obligation to ensure that Bill regulation mechanism can really play a role in stimulating the market to make positive selecting,to reduce the tradings without background from the root,and ultimately to promote a healthy development for the bill market.