The draft is mainly related to the existing laws, regulations, internal regulations and practical experience in the collation and confirmed, the new "loans General Clauses", when implemented, should not the financial institution's credit operations of the impact of volatility
Recently, People's Bank of China and China Banking Regulatory Commission jointly issued the revised "General Clauses loans" (the draft). Overall, the draft is mainly related to the existing laws, regulations, internal regulations and practical experience in the collation and confirmed that the relevant laws and regulations clearer and more standardized and transparent, but also in part reflects the competent bodies of the current focus of concern . As major changes in existing laws and regulations are embodied in, so in the new "loans General Clauses", when implemented, should not the financial institution's credit operations of the impact of volatility.
Change is a matter of course a matter of
The current "loans General Clauses" in February 1996 by the People's Bank of China promulgated the same year beginning August 1 implementation date nearly eight-year history. During this period China's socialist market economic system gradually established, the legal system more complete, opening to the outside world is increasingly deepening. The current "loans General Clauses" has clearly not adapting the new situation, it is logical to modify things.
China in the past eight years, many of the existing "General Clauses loans" have an important influence. First of all, China promulgated new or revised some laws and has in fact changed the existing "loan General Clauses" a lot of content. For example, in March 1999 the National People's Congress adopted the "Contract Law", replacing the original "Economic Contract Law." "Contract Law" devoted a chapter of loan contracts, borrowers and lenders on the rights and obligations of both sides to do a relatively clear. As a lower legal status of the provisions of the existing "loan General Clauses" obviously be adjusted accordingly. Also in December 2003 the NPC revised the "People's Bank of China" and "Law on Commercial Banks", promulgated the "Banking Regulatory Act," which three legal restructuring of government departments in charge of the duties and loans actors The relationship between rights and obligations and, therefore, directly change the current "loans General Clauses" in some of the most basic elements.
Second, China in November 2001 formally joined the World Trade Organization and commitments in November 2006 before the full liberalization of foreign financial institutions financial business, and the existing "loan General Clauses" is not bound by foreign financial institutions loans, which means that in No foreign financial institutions on an equal legal environment for business and competition.
Third, the Chinese government departments have promulgated a number of management, have effectively amended the existing "loan General Clauses" of certain specific provisions. For example, China from 2002 onwards the full implementation of five loan classification system, and different types of risk loans from the reserve, completely abandoned the original four classification system, the definition of bad loans and prepare for the extraction principle.
Fourth, China's financial institutions, corporate governance mechanisms and risk management level has significantly improved, the current "loans General Clauses" A lot of banks involved in the internal management of specific issues by the competent departments have been inappropriate to specific provisions. Also approved by the competent departments, some financial institutions have been the pilot for the loan transfer, including the new loan business. These new services need to have clear rules to regulate.
Four Laws
All this indicates that the current "loans General Clauses" needs to do more adjustments. The current "loans General Clauses" Total Chapter 12, while the draft was reduced to Chapter 8, the number of words have greatly compressed. In the relevant laws and regulations have clear definitions and provisions of the draft are not doing repetitive narrative. Judging from the current published draft, mainly in the following several aspects of the changes:
First, authorities from the People's Bank of China, the CBRC and the People's Bank of China into the same agency. While the regulatory functions from the People's Bank separation, but as a lender of last resort, the People's Bank need to have the liquidity of financial institutions and the capacity to pay (in particular is the most important assets - the status of loans). In addition According to regulations, the People's Bank remains responsible for the financial institutions lending rate management.
Second, the scope expanded to almost all business loans of financial institutions. The current "loans General Clauses" applies only to Chinese-funded commercial financial institutions. The draft Basic Law stipulates that foreign financial institutions have to abide by the "loans General Clauses", domestic policy banks reference implementation.
Third, pay more attention to risk management of financial institutions rather than the specific mode of operation. The draft proposed loans of financial institutions should establish comprehensive credit lines, loans and liabilities of the period management, to calculate the borrower's cash flow, and other principles, and the existing "loan General Clauses" should be involved in many of the financial institutions themselves Identify the issues, such as the assessment of bad loans to affiliates indicators, the establishment of Shendai separation system, grading examination and approval system, credit system and work responsibilities outgoing audit system. The internal design of the banking system, the draft only two words summed up: the lender should be carefully implemented to the credit management system of effective authority; establish and improve loan quality supervision and early warning and control system.
Fourth, a number of specific provisions made corresponding adjustments, such as the implementation of five specific implementation of loan classification system and to encourage further breakdown abolition of the long-term loans is generally not more than 10 years and more than 10 departments in charge of loans to the filing , And the number of long-term loan period will be the major proportion of the assets and liabilities related bound specifically to natural persons eligible borrowers to make specific provisions, highlighted the importance of the personal loan business. According to the People's Bank statistics, in 2003 the new loans, individual consumption loans increased absolute amount second only to infrastructure loans, ranking second in the syndicated loans and loan transfer (sale) of these two is the rise of China to make business loans The requirement, according to my understanding, this is the first time on the transfer of business loans made clear provisions.
In addition with the existing "loan General Clauses" compared to the draft also increased the intensity of punishment, the penalty provisions in general, "the Law on Commercial Banks" have corresponding provisions.
Recently, People's Bank of China and China Banking Regulatory Commission jointly issued the revised "General Clauses loans" (the draft). Overall, the draft is mainly related to the existing laws, regulations, internal regulations and practical experience in the collation and confirmed that the relevant laws and regulations clearer and more standardized and transparent, but also in part reflects the competent bodies of the current focus of concern . As major changes in existing laws and regulations are embodied in, so in the new "loans General Clauses", when implemented, should not the financial institution's credit operations of the impact of volatility.
Change is a matter of course a matter of
The current "loans General Clauses" in February 1996 by the People's Bank of China promulgated the same year beginning August 1 implementation date nearly eight-year history. During this period China's socialist market economic system gradually established, the legal system more complete, opening to the outside world is increasingly deepening. The current "loans General Clauses" has clearly not adapting the new situation, it is logical to modify things.
China in the past eight years, many of the existing "General Clauses loans" have an important influence. First of all, China promulgated new or revised some laws and has in fact changed the existing "loan General Clauses" a lot of content. For example, in March 1999 the National People's Congress adopted the "Contract Law", replacing the original "Economic Contract Law." "Contract Law" devoted a chapter of loan contracts, borrowers and lenders on the rights and obligations of both sides to do a relatively clear. As a lower legal status of the provisions of the existing "loan General Clauses" obviously be adjusted accordingly. Also in December 2003 the NPC revised the "People's Bank of China" and "Law on Commercial Banks", promulgated the "Banking Regulatory Act," which three legal restructuring of government departments in charge of the duties and loans actors The relationship between rights and obligations and, therefore, directly change the current "loans General Clauses" in some of the most basic elements.
Second, China in November 2001 formally joined the World Trade Organization and commitments in November 2006 before the full liberalization of foreign financial institutions financial business, and the existing "loan General Clauses" is not bound by foreign financial institutions loans, which means that in No foreign financial institutions on an equal legal environment for business and competition.
Third, the Chinese government departments have promulgated a number of management, have effectively amended the existing "loan General Clauses" of certain specific provisions. For example, China from 2002 onwards the full implementation of five loan classification system, and different types of risk loans from the reserve, completely abandoned the original four classification system, the definition of bad loans and prepare for the extraction principle.
Fourth, China's financial institutions, corporate governance mechanisms and risk management level has significantly improved, the current "loans General Clauses" A lot of banks involved in the internal management of specific issues by the competent departments have been inappropriate to specific provisions. Also approved by the competent departments, some financial institutions have been the pilot for the loan transfer, including the new loan business. These new services need to have clear rules to regulate.
Four Laws
All this indicates that the current "loans General Clauses" needs to do more adjustments. The current "loans General Clauses" Total Chapter 12, while the draft was reduced to Chapter 8, the number of words have greatly compressed. In the relevant laws and regulations have clear definitions and provisions of the draft are not doing repetitive narrative. Judging from the current published draft, mainly in the following several aspects of the changes:
First, authorities from the People's Bank of China, the CBRC and the People's Bank of China into the same agency. While the regulatory functions from the People's Bank separation, but as a lender of last resort, the People's Bank need to have the liquidity of financial institutions and the capacity to pay (in particular is the most important assets - the status of loans). In addition According to regulations, the People's Bank remains responsible for the financial institutions lending rate management.
Second, the scope expanded to almost all business loans of financial institutions. The current "loans General Clauses" applies only to Chinese-funded commercial financial institutions. The draft Basic Law stipulates that foreign financial institutions have to abide by the "loans General Clauses", domestic policy banks reference implementation.
Third, pay more attention to risk management of financial institutions rather than the specific mode of operation. The draft proposed loans of financial institutions should establish comprehensive credit lines, loans and liabilities of the period management, to calculate the borrower's cash flow, and other principles, and the existing "loan General Clauses" should be involved in many of the financial institutions themselves Identify the issues, such as the assessment of bad loans to affiliates indicators, the establishment of Shendai separation system, grading examination and approval system, credit system and work responsibilities outgoing audit system. The internal design of the banking system, the draft only two words summed up: the lender should be carefully implemented to the credit management system of effective authority; establish and improve loan quality supervision and early warning and control system.
Fourth, a number of specific provisions made corresponding adjustments, such as the implementation of five specific implementation of loan classification system and to encourage further breakdown abolition of the long-term loans is generally not more than 10 years and more than 10 departments in charge of loans to the filing , And the number of long-term loan period will be the major proportion of the assets and liabilities related bound specifically to natural persons eligible borrowers to make specific provisions, highlighted the importance of the personal loan business. According to the People's Bank statistics, in 2003 the new loans, individual consumption loans increased absolute amount second only to infrastructure loans, ranking second in the syndicated loans and loan transfer (sale) of these two is the rise of China to make business loans The requirement, according to my understanding, this is the first time on the transfer of business loans made clear provisions.
In addition with the existing "loan General Clauses" compared to the draft also increased the intensity of punishment, the penalty provisions in general, "the Law on Commercial Banks" have corresponding provisions.
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