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Pudong New Area People's Court Innovates Financial Dispute Mediation Mechanism and Resolves First Lin-gang Case Efficiently
[2025-07-22]

Currently, many financial institutions, especially large state-owned ones, have set up strict management and approval procedures for dispute mediation and rights transfer to meet requirements such as auditing and internal risk control, leading to difficulties in mediating some financial disputes. To address this issue, the Pudong New Area Court has actively explored and piloted a "mediation evaluation and suggestion mechanism" to support financial institutions in their mediation decision-making. Recently, the Financial Tribunal of Pudong New Area People's Court, in collaboration with the Shanghai Banking and Insurance Dispute Mediation Center, jointly visited the Lin-gang Legal Service Center to conduct on-site mediation and circuit trials. By applying the working mechanism of "mediation evaluation and suggestion for financial disputes," they successfully resolved a contractual dispute over the transfer of non-performing financial claims between an asset management company registered in the Lin-gang Special Area and a bank. This case marks the first successful resolution after the Pudong New Area People's Court explored the "mediation evaluation and suggestion mechanism for financial disputes." In handling this case, the court guided professional mediation organizations to conduct neutral evaluations of the dispute, and the mediation organization issued a mediation recommendation letter, breaking the deadlock where the parties were willing to mediate but lacked internal decision-making grounds. This effectively promoted the efficient resolution of the dispute and also explored a new path for diversified dispute resolution in the financial industry, receiving high praise from all parties involved and financial regulatory authorities.

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