Especially, we need to make an overview of the basic legal environment that our financial sector relies on and improve the research on laws for financial innovation (including system innovation, institution innovation and product innovation). Currently, three kinds of financial risks stand high in China’s financial system, which is to some degree related to the inadequacy and incompatibility of our legal rules.
BIS Review 42/2005  3  First, the lack of regulations on credit reporting hindered the development of credit reporting industry and the evaluation on the credit status of the borrowers by the financial institutions.