The Research On Legal Issues Of International Synergy Of Cross-border Bank Insolvency

With globally integrating of the financial and capital markets, the development of setting up of agencies and the operations of commercial banks are more internationalization. Since commercial banks are public sensitive, the relevant domestic regulations are guarded and different seriously. This situation makes many problems, such as the conflict between administrative rights and judicial rights, and the conflict between jurisdictions, and the equity of treatment of creditors. These problems increase the difficulties of responding to instability in larger, more complex banks, and we need all kinds of international synergies to minish or remove conflicts, and to make the insolvency more smoothly and to make creditors paid equitably. Currently there are two modes of international synergy: one is the legislation of uniform regulations, which will be observed by each country; the other is cooperation according to unilateral regulations, bilateral and multilateral treaties or in individual cases when there is no uniform regulation. The former is difficult to carry out, while the legislation of each country can integrated gradually through the mode of model law, and the latter can be exertion broadly in practice recently. The legislation and practice of EU and Latin America are two models of the modes mentioned above. With the financial integration and globalization of our country, we have to face to the issue of insolvency of cross-border banks. We should base upon the"new universality principle", then create special law of bank insolvency and set up deposit insurance system, and perfect the conditions and standards of cooperation, which can promote our country to participate in international synergies.