The Research On The Legal System Of Bank Restructuring In Insolvency

Banking as a high-risk industry, the banking faces a crisis of insolvency at any moment of operation. To deal with this, each country have conducted strict supervision over banking industry. However, the problem can not be fully avoided. Although the banking reform in China has been achieved certain victory, with the entry of foreign banks, the insolvency issue of Bank should be included in the process of legalization. Bank restructuring of insolvency is the inevitable development of China's banking industry demands. Moreover, the bank restructuring and general corporate restructuring is different. Simply applying general bankrupt law to regulate the banking system is a thankless act. China's banks reality facing multiple crises. Meanwhile, the deficiencies on China's bank legal system. All this is to be adopted by China Construction Bank for the reorganization of the legal system to resolve. China should re-establish the new rules from three perspectives: principles, means and plans. The main principles of Bank restructuring include the principle of market-oriented, the principle of early intervention, the principle of rapid solution and the principle of minimum cost, from the root to grasp bank restructuring spirit. The manner for constructing bank restructure should consider both the operating and financial aspects. The major issue for commercial banks is the take over arrangement. For the conditions and requirements of take-over, we can refer to the "structured early intervention and resolution" system which the system exists in United States. Financial restructure consists of public financial assistance and the merger of the legal system. The condition and type of public financial assistance should be strictly regulated. Bank regulatory agencies can make full use of all forms of mergers and acquisitions to solve the bank insolvency, such as a bridge bank, a buy - bear transaction and debt-equity swap. The best suited Bank restructuring plan should be constructed from three perspectives: the establishment, the adoption and the implementation.