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Recommendations On Construction Of Bankruptcy System Of Commercial Bank

Posted on:2009-03-27Degree:MasterType:Thesis
Country:ChinaCandidate:X O FangFull Text:PDF
GTID:2166360278458476Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
Since the founding of China it has been the Government that has provided the commercial banks with credit guarantee. Once the insolvent banks are on the brink of bankruptcy, the Government will take up all the bank's debt. However, after China's accession to the WTO and the lifting of bank-funded special protection, our government had to change the traditional practice in the past. Banks must follow the law of survival of the fittest in the market economy. As a result, we are faced with the problem of how to adapt our banks to the new legal system. A full range of banking issues from the mature mechanism is also a sign of our current financial system reform. Safeguarding the soundness of the banking sector is conducive to the maintenance of fair and effective competition in the banking industry. It is also conducive to banks to prevent adverse selection and moral risk.At present, domestic banks bankruptcy scholars are having a lot of discussion concerning the bank's philosophy, values, etc. After reading widely on the topic the author holds the following view. First, in the proceedings, the regulatory authorities and courts are bound to find conflicting rights. The author believes that a shift from the regulatory agencies' re-conversion to court-led liquidation is necessary. At the same time, regulators have to play a important role in the prevention of bank insolvency. Second, the reasons of the commercial banks' bankruptcy. The author believes that in addition to the application of the "liquidity standard" and "balance sheet standards", a reference to the United States "regulatory standards" is necessary. Third, the main body in the applications for bankruptcy of a commercial bank. The existing legislation on the subject of an application is too narrow, the author believes state banking regulatory agencies, the debtor, and creditors are the three major bodies. Fourth, the order for the distribution of assets in the bankruptcy proceedings. It is necessary to give priority attention to the protection of the central provident fund, pension and other special agencies of the central deposit claims. Fifth, the government's aid. Bankruptcy of a commercial bank has deep social consequences. A broad-brush approach to the issue is not appropriate. When big banks are facing crisis the government should offer assistance carefully. Seventh, cross-border insolvency of commercial banks. Banks in the different countries have very different practice in the insolvency issue. The author believes that in order to protect the interests of creditors our country can choose to apply the "new pragmatism."...
Keywords/Search Tags:bank bankruptcy, regulatory bodies, the reasons for bankruptcy, governmental aid, cross-border bank insolvency
PDF Full Text Request
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