Feng Chen, a partner at Jingtian & Gongcheng, was invited by Getting the Deal Through, a division of Law Business Research, to contribute to its chapter on  “Banking Regulation: China” ( “China Chapter”).

 

The China Chapter is the latest in Law Business Research’s Getting the Deal Through (“GTDT”) series on Banking Regulation. Updated annually, GTDT aims to analyze legal and regulatory changes and priorities in relation to the major global trends, opportunities, challenges and risks. The publication focuses on significant global and regional concerns that affect multiple industries and provide legal insight and practical experience on issues that transcend geographical borders and impact strategic decision making at an international level.

 

GTDT covers more than 90 distinct legal practice areas and industries, and more than 130 major countries and regions. A version of each special series is typically published annually and broken down by country or region. The contributors to each legal topic are selected by GTDT and comprise experienced practitioners in a specific practice or legal area, who are then tasked with writing a chapter specific to their jurisdiction.

 

After years of development, China’s banking industry has ranked among the top in terms of scale. Prior to China’s entry into the WTO, it primarily served its domestic market.  Today, as a member of the WTO, China continues to serve its domestic market but now also provides services internationally. China’s banking industry has achieved diversification, segmentation, consolidation, and also encompasses a diverse mix of industries. Its next stage of development will be to move toward further standardization in legal regulations.

 

On the one hand, the relatively unconstrained market environment is conducive to promoting banking and financial institutions to vigorously support the development of the real economy, especially the healthy development of small and micro enterprises.

 

On the other hand, from a higher level perspective of the overall financial market, the demand for risk prevention and reform promotion in the banking industry is continuously increasing.

 

Against this backdrop, the China Chapter introduced in detail, the laws, regulations and major regulatory policies impacting China’s banking industry combined with the latest regulatory hot spots, and shared experience and views on the current legal issues faced by Chinese and foreign banking and financial institutions, involving the overall legal framework of China’s banking industry, regulatory practices, financial consumer protection, bank takeover or bankruptcy, supervision of foreign banks and future development trends of the banking industry.

 

In general, the China Chapter focuses on banking laws, starting with an understanding of the basic institutional framework and regulatory authorities of traditional banks.  It distinguishes the core functions, rights and obligations, risk management and control, relationship with government departments and the relationship with consumers in the banking industry.  It delves deeply into the government’s regulatory policies and enforcement, so that domestic and foreign banking and financial institutions can have a comprehensive understanding of the overall legal framework and regulatory practice of China’s banking industry.

 

Notably, the China Chapter analyzes the new institutional environment and regulatory requirements in China, as well as the challenges to the development and compliance of banking and financial institutions arising from the changing global economic landscape through multiple dimensions, such as the development of ownership restrictions on foreign banks, the latest regulatory priorities of banking and financial institutions, and the changes and responses of the Chinese banking industry amid global pandemic.

 

The China Chapter co-written by partner Feng Chen and Zhao Songlin, a lawyer within her team, is another masterpiece by  Ms. Feng, in which she shares her many years of practical experience.