The Research on Supervision over Financial Institutions Real Estate Appraisal and Violation of Trust and Criminal Indictment Problem

• Main Authors: Min-feng Hsiao, 蕭明峰
• Other Authors: 王煦棋
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/39321033051138370344

碩士 === 東吳大學 === 法律學系 === 99 === How to fairly appraise real estate has remained a common and contentious problem for financial institutions. There is not any exact definition about market price, depreciation rate and marketability in Article 37 of the Banking Law. Therefore, once a non-performing loan occurs, the bank officers responsible for approving the loan could become suspected of violation of trust and criminally indicted. Based on theory and the legal framework of real estate appraisal, this paper not only introduces the structure of the Uniform Standards of Professional Appraisal Practice and the manual of inspection of Federal Financial Institutions Examination Council, but also uses them to compare with the rules, identifies common deficiencies of Taiwan and brings forth suggested the examination items for Taiwan’s financial institutions. Furthermore, this paper summarizes and discusses the past judgments of real estate appraisal for financial institutions over the years. It also discusses whether Business Judgment Rule could be cited to obstruct the criminal indictment of violation of trust. The conclusion of this research considers that the legal system of financial supervision is not yet perfect in the R.O.C (Taiwan). We have to review and improve the approaches of real estate appraisal. It is necessary and very important to enhance the legal system of financial supervision of real estate appraisal. Financial professionals have to unite appraisal knowledge and strictly observe professional ethics. Moreover, It is very important to distinguish between administrative duty and criminal offense. There are many problems associated with citing the Business Judgment Rule that still need to be solved. At a minimum, financial institutions have to comply with the rules of loan approval.