Memorandum of Cooperation about Credit Governance Inter-Ministerial: Legal Nature, Effectiveness and Optimization

The memorandum of cooperation is an important way for inter-ministerial to govern credit. Different from administrative normative documents, a memorandum of cooperation is not only an inter-ministerial agreement in public law agreements, but also a form of contractual governance. The memorandum of cooperation follows the general principle of contract relativity and has the relativity of effectiveness, but this relativity of effectiveness is also relative; Based on the unique power structure and administrative obedience obligation of bureaucracy, imperfect credit legislation and the protection of personal interests, its effectiveness overflows to the subject and counterpart of local public power. The memorandum of cooperation has the functions of making up for the lack of credit legislation, improving the existing laws, strengthening administrative assistance and giving the traditional private subject more space to participate in governance. At the same time, it also has the defects of impacting the order of the legal system, violating the principle of legal reservation, evading the supervision mechanism and lacking a cooperation guarantee. In order to achieve the inter-ministerial credit cooperative governance objectives, the memorandum of cooperation should optimize its legality, standardization and democracy.