Legal Relationship between Multinational Bank Headquarters and Overseas Branches

Author: Zhong Zhiyong
Publisher:
Publishing Date: 2005-01-01
Features: This book focuses on how to allocate political risks between the creditors of overseas branches and the headquarters of multinational banks when political risks occur in the location of the overseas branches. One key issue is whether the headquarters of multinational banks are obligated to repay the local debts of their overseas branches. The main analytical methods used in this book include rule analysis, comparative analysis, case analysis, and the economic analysis of law. Chapter 1 is the introduction, divided into five sections.
Section 1: Definition of Banks, which analyzes the statutory definitions of banks in the UK, the US, Hong Kong, and Taiwan, as well as the definition of commercial banks in China, and proposes corresponding legislative recommendations for improving the definition of commercial banks in China.
Section 2: Overview of Multinational Banks, which explores the definition and characteristics of multinational banks, introduces their history and development, and analyzes their branch and subsidiary institutions.
Section 3: Overview of Overseas Branch Debts, which primarily analyzes the legal nature and classification of deposits, the formation time of deposit contracts, their legal characteristics and nature, and the legal basis for determining the rights and obligations of the parties to deposit contracts.
Section 4: Overview of Political Risks, which discusses the definition and classification of political risks and analyzes their relationship and differences with country risks, sovereign risks, and commercial risks.
Section 5: Liability Mechanism under Political Risks, which preliminarily explores the factual factors and overseas interest rates affecting the liability of the headquarters of multinational banks, and briefly introduces the main arguments of the headquarters of multinational banks and the main counterarguments of creditors.
Chapter 2: International Legal Analysis of the Liability of the Headquarters of Multinational Banks, divided into four sections. Section 1: Liability of the Headquarters of Multinational Banks and the Theory of State Conduct, which analyzes the meaning and origin of the theory of state conduct, the jurisdictional requirements of the theory of state conduct, exceptions to the theory of state conduct, and the application of the theory of state conduct in disputes over overseas branch debts, and provides a brief review of the theory of state conduct.
Section 2: Liability of the Headquarters of Multinational Banks and the International Monetary Fund Agreement, which analyzes the foreign exchange controls permitted under the Agreement and explores the relationship between the liability of the headquarters of multinational banks and Article 8(2)(b) of the Agreement.
Section 3: Liability of the Headquarters of Multinational Banks and the Multilateral Investment Guarantee Agency Convention, which introduces the coverage of the Multilateral Investment Guarantee Agency and analyzes the impact of the Convention on the liability of the headquarters of multinational banks.
Section 4: Liability of the Headquarters of Multinational Banks and Conflict of Laws, which introduces the basic rules of contract law choice in England and the US, and discusses the application of the principle of party autonomy and the principle of closest connection in the choice of law for deposit contracts, as well as the judicial practices of courts in the UK, the US, France, and Germany in the choice of law for deposit contracts.
Chapter 3: Domestic Legal Analysis of the Liability of the Headquarters of Multinational Banks, divided into five sections. Section 1: Liability of the Headquarters of Multinational Banks and Company Law, which explores the basic theories of the final liability theory and the independent entity theory and their application in disputes over overseas branch debts.
Section 2: Liability of the Headquarters of Multinational Banks and Contract Law, which studies the basic rules of non-performance, force majeure, and standard exemption clauses and their application in disputes over overseas branch debts.
Section 3: Liability of the Headquarters of Multinational Banks and U.S. Special Legislation, which introduces and analyzes U.S. state legislation, Federal Reserve Board regulations, and federal legislation.
Section 4: Liability of the Headquarters of Multinational Banks and the Deposit Insurance System, which studies the possibility of deposit insurance companies covering political risks in the location of overseas branches.
Section 5: Liability of the Headquarters of Multinational Banks and the Overseas Investment Insurance System, which introduces the coverage of the overseas investment insurance system and analyzes its impact on the liability of the headquarters of multinational banks.
Chapter 4: Economic Analysis of the Liability of the Headquarters of Multinational Banks, divided into three sections. Section 1: Overview of Economic Analysis of Law, which briefly introduces the basic theories of economic analysis of law and compares legal rule analysis with economic analysis.
Section 2: Economic Analysis of Contract Law, which points out the economic significance of contract law and explains how economic analysis of law explains non-performance.
Section 3: Economic Analysis of the Liability of the Headquarters of Multinational Banks, which introduces and reviews the economic analysis conclusions on the assumption that creditors, banks, and asset owners bear political risks.
Chapter 5: Jurisprudential Analysis of the Liability of the Headquarters of Multinational Banks, divided into three sections. Section 1: Liability of the Headquarters of Multinational Banks under Expropriation/ Nationalization Risks, which analyzes the jurisprudence of expropriation/nationalization and points out the reasons why asset owners bear expropriation/nationalization risks.
Section 2: Liability of the Headquarters of Multinational Banks under Foreign Exchange Control Risks, which introduces the basic system of foreign exchange control and analyzes the legal nature and applicability of foreign exchange control regulations, as well as the reasons why depositors bear foreign exchange control risks.
Section 3: Theoretical Solutions for the Allocation of Liability of the Headquarters of Multinational Banks, which analyzes the possible forms of solutions for the allocation of liability of the headquarters of multinational banks.
Finally, after analyzing and reviewing various political risk allocation schemes and legislation, the author proposes different risk allocation schemes for expropriation/nationalization risks and foreign exchange control risks.