Improve The Commercial Banks' Market-exiting Supervision Legal System In Our Country

The sound system of financial supervision and regulation is an organic combination of market access, market operation and market-exiting supervision and regulation. Commercial banks'market-exiting regulation is the essential content of modern financial regulatory system under market economy conditions, which promote and restrain market access or market operation regulation mutually and together constitute a sound commercial bank regulation legal system. In late 2006, foreign commercial banks access to China comprehensively. China's financial industry is confronted with increasing competition. Together with the global financial crisis triggered by sub-prime crisis in the United States since 2007 has not yet subsided, some weak competitiveness of the commercial banks would be out of the market inevitably. There is no guarantee that the financial order is stable if there are no supporting legal system and measures to handle with the sick commercial banks.Finance is the core of modern economy. The financial industry is a high-risk industry, and commercial banks are to produce one of the main financial risks, while the commercial banks'market-exiting is a greater risk-taking behavior. Commercial banks are more vulnerable to systematical hit than the average commercial or industrial enterprises. Commercial banks'withdraw from the market is the major problems related to the financial security and even national economic security. So far, strengthening the monitoring of commercial banks, handling the sick commercial banks properly, and taking timely measures to ensure their exiting market safely are of great significance to safeguard the financial order and maintain the social stability.Since the Asian financial crisis happened in 1997, our nation has repeatedly handled with some financial institutions which are in higher risk to make them exit the market. But among them, commercial banks are very few. The full assets liquidation of these financial institutions is mostly insufficient to repay the debts. In order to safeguard financial stability, the state usually adopt the form of fiscal funding or direct loan from the central bank,and then trillions of RMB are put into these kind of disposal. This increases the burden on the state, but also not conductive to the operator to raise the awareness of the risk. As financial institutions, particularly commercial banks to withdraw from the market in China are happened only in recent years, we are lack of both relevant theoretical support and legal norms in practice. So, there are intense conflicts during the withdraw from the market among the parties of different interests, which is inevitable.Today, the regulatory legal system of China's commercial banks'market-exiting are still very weak both in legislation and in practice, so it is in urgent need to be improved. Therefore, to study market-exiting regulation of commercial banks under market economy conditions, to improve the relevant legal system has become an important practical problem related to the stable development of China's financial industry. Thus, based on studying the general theory of commercial banks' market-exiting regulation, we should have a comprehensive analysis of our legal system related to this topic, and we should also fully investigate and learn from the relevant extraterritorial legislation experience suited to China, to sum up adequate measures in order that China's commercial banks'market-exiting supervision legal system would be improved. Then, we can take these measures to guide commercial banks'market-exiting at present and in the future, to properly handle the resulting contradictions, to establish the system environment of the commercial banks' market-exiting, which runs under the market rules.