Research On The Legal System Of Financial Institution's Bankruptcy

Upon the entry into WTO, China has opened up the financial services market all round and now both Chinese financial institutions and foreign financial institutions are standing on the same scratch line. Undoubtedly, the uncompetitive ones will be eliminated. Market exit mechanism must be established in Chinese financial market according to the rules of market economy. Bankruptcy system of financial institutions is an important part of market exit mechanism, but there are severe defaults in current legislation about bankruptcy of financial institutions. Though there have been some relevant provisions in new Bankruptcy Law, they can not satisfy the practice of financial institutions. It is urgent to construct our countries' bankruptcy system of financial institutions. The article is to bring forward the innovative ideas and systemic design about legislation on bankruptcy of financial institution through comparing both domestic and overseas bankruptcy legislation and discussing the necessity of providing a separate code to regulate bankruptcy of financial institutions. The choice of legislative forms, determination of name and regulatory objects and asset disposition will be the main topics. Systems about exterior risk supervision, deposit insurance and compensation are added to supply steady environment for the sound competition and efficiency improvement in financial market.