Theory about the Legal Risk Prevention of Financial Margin Pledge in Commercial Banks

The financial guarantee corporations provide pledge guarantee for principal debtor in form of margin.Because of its continuous operation and the leverage effect,diversification of risk by the combination of debtor at the same time,it has been very popular and spread fast these years. However,as an innovation in financial guarantee business,due to lack of legal basis and risk control as well as the judicial interpretation conflicts,this kind of pledge may beinvalid in judicial identification. Then the creditor's rights of compensation cannot have a hig hpriority,which will increase the financial hazards. Therefore,how to set up the money pledge by specialization needs not only a further definition in legislation,but also a interest balance between the pledge and third party. And a pressing matter of the moment for commercial banks is to establish and perfect the legal system of risk control in financial margin pledge.