A Research On The Role Of Deposit Insurers In The Bank Insolvency Proceedings

With the deepening of the globalization, the competition in the banking industry becomes more and more fierce, the failed banks will undoubtedly quit from the market in accordance with the law of "survival of the fittest". However, China has not yet set up a complete series of legislation for resolution of troubled banks and other deposit saving institutions. In what ways can failed banks be able to quickly and safely quit from the market has gradually become the focus in the research of banking law and bankruptcy law. Looking at the bank insolvency legislation in the developed countries, the deposit insurance agencies play an important role in the bank insolvency procedures. Deposit insurers greatly increase the efficiency of bankruptcy proceedings and maximize the protection of the interests of depositors as well as reduce the adverse effects caused by bank failures. In China, the regulations on bank insolvency and deposit insurance will come into effect in a short time, how the role of deposit insurer can be adjusted to fit for the existing bank insolvency framework has become the focus of attention.This thesis is composed of three parts including the abstract, main body and conclusions , the main body is divided into four chapters:Chapter One elaborates the definition of bank insolvency and the legal framework as well as the institutional framework for bank insolvency proceedings. In addition, this chapter also highlights the introduction of deposit insurance system and role of deposit insurance agencies in the bank insolvency proceedings. Chapter Two takes the differences between bank insolvency proceedings and the general insolvency proceedings as a theoretical foundation, discusses the necessity of deposit insurer in the banking insolvency proceedings. In the bank insolvency proceedings, the deposit insurer plays three active roles. First, it can simplify the bank insolvency procedures; secondly, it may reduce the workload of court and the administrator; besides, it may help to reduce the cost of bank insolvency as well.Chapter Three explored the legislation experience in the United States, Canada, Japan, and Taiwan. The functions of the deposit insurers in the four countries and regions cover the main types of deposit insurance agencies around the world which have broad representation and study significance. At the end of this chapter, this paper takes the functions of deposit insurance agencies as a criteria for the type of deposit insurers and divides them into three different types, the pros and cons of the four types are also evaluated.Chapter Four discusses the suggested roles and functions of deposit insurer which is to be established in China based on the outcome of the previous chapters and current bankruptcy proceedings by drawing on international experiences, the specific rights and responsibilities of the deposit insurer is also analyzed.The last part of this paper explores the main arguments of this article and once again pointed out that the main opinions in this paper.