On December 4, Wang Chuang, head of the Second Civil Division of the Supreme People's Court, highlighted typical civil and commercial cases where courts have upheld the lawful rights of private enterprises during a press conference.
Wang emphasized that regulating financial institutions' conduct is crucial to addressing the financing difficulties and high costs faced by private enterprises. Resolving financing issues is fundamental to ensuring their survival and growth, as well as fostering innovation in the private sector. Courts are committed to supporting financial services for the real economy, helping private enterprises secure broader financing channels and lower costs.
By adjudicating financial loan disputes, courts enforce national financial regulations, urging institutions to improve inclusive financial services. They scrutinize practices such as excessive interest and fee charges, unilateral loan condition adjustments, and premature loan recalls, ensuring compliance with policies and safeguarding private enterprises' rights.
In one case, a bank charged a real estate developer a 100 million yuan "financing commitment fee" without providing corresponding services before issuing a 3.5 billion yuan loan. The court ruled this violated transparency and fair pricing principles, deducting the fee from the principal under the "upfront interest" rule.
Another case involved a borrower delaying interest payments by just two days but later fulfilling obligations. The court deemed this a minor breach and rejected the bank's demand for early loan repayment, citing unfairness given multiple guarantees. These rulings clarify boundaries for financial institutions, reducing financing costs and stabilizing business expectations for private enterprises.
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