| The present thesis contains five parts beside the preface and the conclusion. Chapter â… Introduction to The Deposit Insurance Legal System The Deposit Insurance Legal System dates back to the Great Depression in 1933. The said system played a vital role respectively in the 30's and 80's financial crisis. Up till now, there have been 67 countries or regions that have set up this system. The deposit insurance, according to different criteria, may falls into various patterns. There are three subjects of the deposit insurance, namely, the agency of the deposit insurance (hereinafter called "agency") is the insurer; the bank is the insurant; the depositor is the beneficiary. As for the agency, it is a commercial subject and an administrative subject as well. Based on the classification of property insurance, the author believes that the deposit insurance belongs to the guarantee insurance which is involved in the liability insurance. The current view on the object of the deposit insurance is to define it as the deposit itself. The present thesis, however, define it as the liability undertaken by the bank to refund the depositors their deposit. The content of the deposit contract is the object of the deposit insurance contract; thus the former is the latter's "object" contract. The legal relationship of the deposit insurance features the inequality of subjects, the compulsiveness of the contract, and the unmatched rights and obligation. Chapter â…¡ The Protection Provided by the Agency to the Insured Bank and the Depositor The bank since its coming-into-being has a deficiency in its system. It runs on the risk of being squeezed, which is infective. Thus the bank is faced with a crisis of dual bankruptcy, viz. normal one and the one result from being squeezed. In the inferior position, the depositor, as well as the bank, calls for protection from the agency. The agency is under reliability only when the bank is squeeze to close doors due to its bankruptcy, dismissed by its shareholders or closed by the financial governing sectors. The protection of the agency may results in moral hazard, which is its negative feature. The bank, after its indemnity to the depositor, enjoys the right of recourse instead of the right of subrogation. As the bank's greatest liability is deposit, its exertion of the right of recourse may result in becoming the biggest creditor to the bank. Chapter â…¢ The Agency's Regulating and Supervising the Insured Bank The agency's right of supervision is decided by the Insurance Law, the Law of Deposit Insurance, the Contract of Deposit Insurance and the market mechanism as well. A multi-level of the banking regulatory system is adopted in America, viz. the Federal Reserve Board (FRB), the Comptroller of Currency (OCC), the Federal deposit Insurance Corporation (FDIC) and the state-level banking regulatory organs. The examination of the agency on banks can be carried out in two ways, namely, on spot and not on spot, the former of which is vital. Some punishments are available in case any bank is found abnormal: denial of insurance, cease and desist proceeding, suspension and removal of directors or managers, and termination of insurance. Once China has established a system of deposit insurance, the various regulatory organs' supervising spheres should be defined. The author suggests that the China Banking Regulatory Commission (CBRC) should in charge of the big four national banks; the newly set-up deposit insurance company regulate other banks; and the People's Bank of China (PBC) is held responsibility for the finance market. Chapter â…£ How Does the Agency Save the Insured Bank, Resolve the Failed Bank and Liquidate Their Assets The bankruptcy of the banks bears many similarities with that of commercial companies. In America, rather than the Bankruptcy Act, the Federal Deposit Insurance Act, together with many relative laws, regulations and guiding cases, applies to the bank's bankruptcy. The bankruptcy should be claimed by the banking registration organ an...
|
PDF Full Text Request