On The Credit Protection Under The Existing Contract Law System In China

Credit property has taken the majority part in the constitution of the capital of commercial banks in China .All the problems caused will be defined in the higher loan rate directly or indirectly .Numerous loans have become the most crucial problem for banks ,which exerts the largest barriers on the future enhancement of domestic economy .If the numerous loans were not deserving to be tackled in a sensible way ,the achievements we have achieved since reform and opening-up will be scuppered.Therefore,it is vitally urgent to resolve the loans in commercial banks.This paper aims to explore the defects on the grounds of making analysis of a great variety of stipulations of the law of contract towards assuring and protecting debtors such as the waranty system of repayment,implementation of the responsible system and the system of counterplea, and also perfect our system in assuring and protecting creditors in accordance with the assmilating the advanced legislation system . On the basis of these mentioned above , this paper analyzes the feasiblity in the arrangement of the contracts of credits and design the agreement between creditors and parties concerned to compensate for the weakness so that banks can get avoided from credit loans to the most extent .