A Comparative Research On The Regulatory Insolvency Of Commercial Bank

It is widely recognized that there are differences between the bankruptcy procedures of commercial banks and average corporations. In specific, the "Regulatory Insolvency" procedure is preferred for the bankruptcy of commercial banks. Because the concept of "Regulatory Insolvency" is rarely discussed in China, the author explicitly introduced it in the first section, mainly on questions of why troubled commercial banks should be applied with this special insolvency procedure; the development of this phrase "Regulatory Insolvency"; the major features of this procedure; as well as the main topic of this essay. In the second section, the author did research on the initiation standards based on an analysis on the American featured Prompt Corrective Action, which is also appropriately applicable to China's practice. The major topic of the third part is the measure regime of this "Regulatory Insolvency". It was discussed in three phases that are the informal remedial measures phase, the formal remedial measures phase and the regulated liquidation phase. After this is the final section of this essay which discussed the current application of this special procedure in China.