In Finance, What Is Vested Interest?

A financial case refers to the case where the applicant is executed by a financial unit.

Financial case

Right!

Financial cases are

A financial case refers to a case in which the person applying for the case is a financial unit.

1. In terms of crime types, bill fraud cases have risen. Compared with the previous period, criminals are altered through forgery

The main factors that make it difficult to execute financial cases in China:

I. Short-term target behavior

1. The quality of the enterprise is inherently insufficient. Enterprise quality is a comprehensive reflection of the quality of management personnel, product competitiveness, and financial strength. From the perspective of the quality of business operation and management personnel, due to the lack of professional managers in China, many medium-sized enterprises have started from scratch and started businesses. The main management managers are all chairman and general managers. Their business management model has become In the fierce market competition, it is easy to cause short-term target behavior. From the perspective of product competitiveness, SMEs lack the ability to innovate in science and technology and have no strength to graft the latest scientific research results. From the perspective of financial strength, companies often register when With cash verification, there are no traces and no shadows, and the phenomenon of financial distortion is common. It is difficult for banks to determine the strength of their funds based on the industrial and commercial registration of enterprises and financial statements. In credit practice, those with asset-liability ratios below 70% are considered to be loanable. Bank credit actually bears a hard gap in corporate funds, leaving hidden dangers of difficulty in realizing debts and difficult implementation.

2. Enterprise's insolvency. Due to the lack of internal and external constraints and information asymmetry, during the platform life of a product, it is difficult for a bank to determine whether a company has a problem of withdrawal or transfer of funds. Once the enterprise completes this process, it will start a new stove and start a new business in another place or in the name of another person to re-operate, and the original business will be left to the loan bank. At this point, the bank has only resorted to legal means to recover, the secured loan can still dispose of collateral and recourse guarantor whose value is not true, and the credit loan basically forms a factual loss due to the recovery of other creditors. In addition, in this process, some companies have also adopted means of continuously expanding investment, covering up the incompleteness of the capital chain, forcing banks to consider the safety of injecting credit funds in advance and continue to increase credit investment. It increases the credit risk and the difficulty of realizing the debt.

Second, the legislation is lagging behind, the method is single, and the mechanism is incomplete

1. Relevant laws and regulations have weak constraints on corporate debt evasion. In China's current legal system, creditor's rights for credit behavior are guaranteed, but the coverage is incomplete, and the debtor's obligation to perform debts is not perfect. For example, the terms "should" and "right" in Articles 92 and 93 of the General Principles of the Civil Law are not clear in meaning, they are not compulsory to the debtor, and they have poor operability, which brings difficulties to judicial practice. Another example is the issue of civil liability for the liquidation subject's failure to perform or incomplete performance of its liquidation obligations after the company's business license has been revoked due to failing to conduct the annual industrial and commercial inspection. Due to the absence of relevant laws, the creditor's rights are left vacant.

2. There is a single means of enforcement and insufficient sanctions. Because the court's power to investigate the registration and business status of enterprises, the compulsory freezing of transactions, and the compulsory transfer of power are not guaranteed, the existing one-seal, two-seizure, and three-person arrest enforcement methods and measures make it difficult to evade maliciously. Debt acts constitute strong sanctions; although the law has corresponding prohibitive and obligatory clauses, these clauses are too weak in the legal constraints of the person to be enforced, and it is difficult to form a deterrent effect; in addition, according to the Civil Procedure Law, the parties apply for a court to enforce the deadline, One year for citizens and six months for legal persons, the time limit is too short, and it is an uninterruptible, suspended or extended time limit, which objectively also results in a low rate of enforcement cases.

3. The implementation system and mechanism need to be improved. Court enforcement, as a means of public relief, essentially exercises judicial administrative power, which is an administrative act that is different from judicial adjudication power. Therefore, the implementation of "separation of trial and execution" is a progress. However, after the "separation of trials", the superior courts still supervised and guided the lower courts and did not solve the problem of lack of unified management and coordination, making it difficult to form a joint effort to counter local and departmental protectionism in the new situation. In recent years, in order to solve these problems, it has been emphasized that the executive power is the judicial administrative power. Executive bureaus have been established at all levels. From the perspective of the operation status and implementation effect, it seems that it is just a replica of the executive court. Cross-execution, commissioned execution, and other effective execution methods and methods that embody unified leadership have not been well used.

Incomplete autonomy of creditor behavior

The implementation of financial cases is difficult, and the factors of banks' own credit management cannot be ignored. Banks place heavy emphasis on lending, light income, and extensive credit management systems. As a result of overdue loans and disputes, it is known that enterprises have been shut down for a long time. Such cases are endless.

At present, a large number of difficult financial cases are mainly historical legacy cases, or loans issued before the credit responsibility system is clearly defined. Due to the changes in the past, credit management, collection, and disposal personnel have been replaced, and the responsibilities have gradually become clear. Top-down supervision and management have been strengthened, and the accountability system has been implemented. In the process of disposing of these non-performing assets, banks often have to bear part of the losses, and the conclusion of the case means that they have to give up part of their claims. Because of the fear of taking responsibility, grass-roots credit managers do not seek merit, but do nothing, and the difficult to collect, easy to write off mentality is more common, which has caused some loans to miss the opportunity to collect.

4. Weak executive management system and complex execution environment

During the transition of the economic system, the law enforcement environment faced by the people's courts is generally complicated and constantly changing, which cannot be compared by other countries. The problem of weak current enforcement and management systems is becoming increasingly prominent. At the same time, under the divided benefit distribution system, due to the existence of vested interests, the subordinate nature of the judiciary (human, financial, and material are subject to the local), which is not enough to effectively resist the interference of local (sectoral) protectionism. Justice is facing challenges.

Due to the clear facts, high success rate, large amount of money, and wide social impact of financial cases, in recent years, with the general strengthening of social legal awareness, various types of brutal interference in the settlement of cases and violent resistance to the enforcement of local (departmental) protectionist behaviors There have been improvements, but the issue of hidden interference should be paid more attention to. For example, enterprises used to avoid banks and engage in "dark box" operations to escape financial debts. Nowadays, they are often led by local governments or competent authorities to convene banks and court personnel to study how to complete legal procedures, reduce the credit management responsibility of grassroots banks, and reduce enterprises. Workarounds to circumvent judicial enforcement, such as debt service payments. At the same time, the government has included the annual bank debt write-off efforts and the amount of write-offs in local assessments and rewards to financial institutions, and has encouraged banks to increase reporting of bad debt write-offs to higher-level banks, in order to deal with local reform costs and corporate operating risks. Consciously there is a tendency to pass up step by step.