On The Legal Control Over Foreign Banks In Modern China

The foreign banks which have privilege play an important role in the field offinance in modern China,and share the tripartite confrontation with Cash shops(qianzhuang)and Chinese banks.Before the central bank system built in the1930s inChina,the foreign banks play the role of central bank essentially by loan,discount andthe control of exchange rate. The legal identity of foreign banks changed from one toanother. Before the abolishment of extraterritoriality,the foreign banks have theprivilege that foreign banks don’t have to obey the Chinese law.After the abolishmentof extraterritoriality,the Chinese government can supervise and regulate the foreignbanks according to the Chinese law completely.However, the Chinese governmenttake some legal controls which are in-depth and systematic.With the development ofthe banking law and the abolishment of extraterritoriality,the Chinese governmentconsummate the legal system of foreign banks finally.Except the introduction and conclusion, there are five parts in the dissertation asfollows:Chapter one introduces the forms of foreign banks in modern China,which arepure foreign banks,sino-foreign banks and sino-foreign saving banks. In the earlyperiod of development of foreign banks,there are mainly English banks.Until theend of19thcentury and the beginning of20th,there are more foreign banks coming toChina,which are fromFrance,Russia,Germany,Japan,America,and so on. Besides,thereare sino-foreign banks and saving banks, most of which don’t have to obey theChinese law in modern times.These banks almost establish,run,especially issue thenotes without the Chinese government’s permission.Chapter two observes the impact of extraterritoriality on the legal system offinance in modern China from the angle of text and practice about the unfair treaties and the confession system.It is found that the Chinese banking law develop fromrough to systematic，from regulations to banking laws,from regulating concreteincidents to general rules by observing the banking law of the latest Qing Dynasty, thePeking Government and Nanking Government.Chapter three discuss the admittance of foreign banks in the text of Chinese law.At the beginning,China know foreign banks only,then wake up to the hurt of lackingbanking law to regulate them, and finally control the admittance of foreign banks bymaking law and enforcing it.On the one hand,the Chinese government control theestablishment of some sino-foreign banks by making an agreement at first,and thenmake agreement on bank establishment according to Chinese law,and finally abolishthe extraterritoriality.On the other hand,the Chinese government make efforts toconsummate the banking law system for the regulation of foreign banks.In the processof control foreign banks coming into Chinese finance market,every kind of foreignbanks become the subject of norm of Chinese law.It is then to the banking articlesprocess that we must turn for the effectiveness in legal consideration and inpractice.While a gradual development forming in the trample law and order foot willcombine the restrictive elements outlined above.Chapter four take the jure control of note-issue of foreign banks as the center,anddiscuss the bank operations and the bank safety. First this part retrospect the foreignbanks issuing notes without restriction and its effect.Before the perfection of bankinglaw,the social organizations and government have the voice of objection and makesome resistance.The Regulations Restricting the Issue of Paper Money promulgatedby Peking government can be regard as the early exertion by the government.Nankinggovernment strive on silver reform,and acquire some result on preventing the out flowof silver from China.In the following currency reform,the government make theforeign banks contribute the silver to national treasure,and the legal money(fabi)become the unit of account and means of payment. The legal money(fa bi)becomethe unique currency after reform.Besides,this part also discuss that the legal controlover the bank operation and the bank safety by the government grow up from noregulations to systematic banking law gradually.Chapter five retrospect the history of the law of close and liquidation in modernChina from two aspects.One is the history of liquidation institutions of foreign bankswhich have the extraterritoriality by the consular court;the other is the history of liquidation institution of sino-foreign banks by Chinese government and itsdevelopment. Because of the state of hostility China deny certain contry’s consularjurisdiction,we clear the Germany and Japanese banks.as the breakthrough ofinstitution development. The liquidating sino-foreign banks which are registered inChinese government or established according to Chinese law mellow the liquidationinstitution.Finally we clear the obstacles by the abolition of the unfair treaties,and theliquidation institution of banking law for Chinese banks has been greatly developed.The liquidation institution of banking law for foreign banks is completed at last.Chapter six summarize the fundamental characteristics of legal control overforeign banks in modern China by observing its vicissitude,which are that theextraterritoriality have great effect on legal control over foreign banks, the legalcontrol developed from fragment to systematization,from afterwards tobeforehand,and discuss the significance of the history to reality on the basis ofsummarizing the relationship between the finance sovereignty and finance law.This dissertation fulfills the foreign banks law of the banking law in modernChina, probes the law of development about the government controlling banking incertain circumstances,and abstract the theory significance as the reference for reality.