Research On The Bank Insolvency Legal System

Survival of the fittest is a normal result in the market economy. In the other word, bankruptcy is a rational law of commercial economy. China's banking sector operates under invisible government credit security and mainly relies on administrative plans to set up, operation and management. In this condition, bank is almost no market exit issues for a long time. China's banking sector must to face bankruptcy under the "labor pains" and objectively accept the "survival of the fittest, natural selection" laws of nature, to complete the true identity of the independent market entities magnificent changes in order to get rid of the cycle of "big development-the high non-performing (assets)-big stripping " and enhance their competitive strength with the development of market economy, the deepening of financial reform and international competition in the banking sector. It is the inevitable choice based on the conditions that establish a bank insolvency legal system and provide a safe, orderly exit path. It is a system study that how to plan our banking sector insolvency legislation. This article made some constructive comments which adapt to this reality, integrate relevant knowledge, and combine international experience.This article thesis divided into five parts which based on the thesis of value and truth. The first chapter is based on theoretical and empirical analysis of the contents, the latter two, three, four, five chapters is the specific content of the system structure is the main part of the paper.The first chapter is mainly talking about the value of bank insolvency legislation. The author discuss the need and necessity of establish the bankruptcy legal system of China's bank through analysis the legal value. The author starts this paper from defining the meaning of insolvency in order to analysis the value of bank insolvency legislation from the aspects of the value of general insolvency law and financial regulation based on defining the concept of insolvency law and financial regulation. Finally, the author gets the conclusion that construction the legal system of bank insolvency is in emergency through analysis the practice of bank insolvency.The second chapter discusses the problem of bank insolvency legislation model. The author divided the legislation of the other countries into two different legislative models. and analyzed and compared two different cases based on observing the legislation of the other countries. The author gets the conclusion that we should select to enacted the special law of bank insolvency separately based on modify the "Bankruptcy Law ".The third chapter is the design for bank bankruptcy arrangements. Re-construction becomes to the key points of the entire bank insolvency legislation under the influence of the concept of prevention. The author believes that the bankruptcy reorganization is the core of the prevention bank insolvency system. The first section is an overview of the reorganization system, and analysis the legitimacy, legal concepts and the methods of the reorganization. The second section is focus of the restructuring mechanism which is design and arrangement of the reorganization. The paper interprets several important issues which are the review of the reorganization plan, voting procedures and implementation due to space limitations.The fourth chapter is mainly about disclosure system of bank insolvency information which is the highlight of this paper. The author believes that effective supervision of banking organizations rely heavily on bank information disclosure in the information age. The information disclosure system in bankruptcy laws of the banking system is not only the protection of consumers to make financial transaction security information which is necessary for consumers to make timely decisions in trading their investment behavior and avoid risk, but also facilitate for the insolvency administrator to understand the problem of the bank and make decisions effective. In this chapter, the author based on the aspects of analysis of the legislative situation and the difficulties in practice, given some suggestions which mainly about improving the disclosure of bank information law.The fifth chapter is discussing bank liquidation which is the last bulwark of the bank insolvency proceedings. This chapter mainly talking about the standard of bank insolvency, the scope of the applicant, the selection and functions of the bankruptcy administrator and the distribution and settlement of the estate due to the special nature of bank insolvency. Liquidation procedures must focus on the in principles of protecting the interests of small depositors. Therefore, the plan of the system must implement this principle to details, and especially point out the difference from the general liquidation which will be discussed in this paper one by one.