| "Administrative Measures on Related-party Transactions between Commercial Banks and Insiders or Shareholders" was Issued by China Banking Regulatory Commission (CBRC) on April 2, 2004, which showed that the CBRC had tightened supervision on related-party transactions of commercial banks. However, there is few systems study about this question in our country, so this paper makes a theory and empirical investigation on the related-party transactions and its Regulation of commercial banks.This paper is divided into four parts to survey the character and influence of related-party transaction, and the factors brought to improper related-party transactions of commercial banks, and the regulation on this transaction. The first chapter surveys the definition and characters of related-party transaction. Related-party transactions were commonly occurred in enterprise group to reduce transaction cost and shun tax. However, improper related-party transactions maybe result in large negative influence. The second chapter surveys the factors brought to improper related-party transactions of commercial banks, and the influence on each part of improper related-party transactions of commercial banks. The first section pointed out that asymmetric information, and the inherent lack of modern enterprise system, and inside monitoring faulty, and competition environment are important factors that bring to improper related-party transactions of commercial banks. The second part of this chapter surveys the improper related-party transactions' influence on commercial bank, control-party and other shareholders, bank clients, depositors, and financial system. The followed chapter analyzes related-party transactions of commercial banks in our country, including five listed banks and city commercial banks. Through the theoretical analysis and practice review, we can conclude that related-party transactions of commercial banks contain huge risks. Because the inside monitoring of commercial bank exists serious faulty, supervision of outer party is very important. The last chapter of this paper surveys the supervision on related-party transactions of commercial banks. This part introduces in detail the rules and measures of American financial authorities about supervision on related-party transactions of commercial banks, then puts forward some suggestion on supervision of our country. |
