Research on Improving the Bank Draft System

Author: Hu Desheng
Publisher:
Publish Date: 2004-08-19
Features: Bank draft is a unique type of negotiable instrument in China. The initial motivation or purpose behind its design was to address the payment issue where a buyer travels to a different location to purchase goods but is uncertain whether they will ultimately pay the intended supplier, or the exact amount of the payment. In essence, it is a special financial product that aligns with China's national conditions. However, the background of its emergence during the early stages of China's reform and opening-up determined its inherent shortcomings in institutional design. China needs to develop the commercial law theory of bank drafts. This book provides a detailed introduction to the evolution of the negotiable instrument legal system in the People's Republic of China after its founding, as well as the development history of foreign negotiable instruments and systems. Through theoretical and empirical analysis, it highlights some of the problems in the legal provisions and practice of the bank draft legal system. At the same time, based on the elaboration of fundamental principles of negotiable instruments such as negotiability, causality, literalism, and formalism, as well as the theory of variant drafts, it proposes ideas for establishing and developing the commercial law theory of bank drafts and offers several suggestions for improving the bank draft and related legal systems. The author hopes that the publication of this book will contribute to the development and improvement of China's bank draft system.