Study On Establishing Legal Mechanism Of International Cooperation In Cross-border Bank Insolvency

Cross-border banks play an important role in international economy and market transaction. With the rising tide of economic globalization, more and more commercial banks set up their overseas branches and agencies. As a financial institution, it does business beyond one country. It can be called cross-border bank. Cross-border banks have gained more prompt development, meanwhile, the risks they facing are increased. In the market economy, enslaved to the market competition regulation, cross-border bank insolvency occurs frequently. The Powerful function of cross-border bank and its insolvency brings a far-reaching influence to the global economy. For this reason, we must pay great attention to their operation.Since the cross-border bank insolvency has a strong foreign-related feature, involving many countries and regions, while the relevant domestic regulations are different, the relevant interest conflicts, coupled with cross-border banks'own particularity and complexity, it brings a series of conflicts, and legal issues are resulted, such as the conflict between basic principles, the conflict between jurisdictions, the eligibility for insolvent applicants and deciders, the limit of tates and the insolvent allocation sequence and so on. These problems increase the difficulties of responding to instability in larger, more complex banks, and we need all kinds of international cooperation to minish or remove conflicts, and to make the insolvency more smoothly and to make creditors paid equitably. So, International cooperation is crucial to resolve the legal issues of cross-border bank insolvency. Indeed, the international community has made some useful attempts at cooperation in the field of cross-border bank insolvency.Currently there are two modes of international cooperation:one is that countries cooperate according to unilateral regulations, bilateral and multilateral treaties; the other is that relevant organizations draw up model laws through which the legislation of each country can integrate gradually. To some extent, these collaborative approach is reasonable. However, obvious deficiency also exits, the progress is not very remarkable. It calls for more effective international cooperation in cross-border bank insolvency urgently.Starting with the legal issues of cross-border bank insolvency, this article analyzes the essence, performance and causes of these issues, discusses the existing forms of cooperation taken to resolve these issues by the international community, and makes a exploratory consideration to improving international cooperation in cross-border bank insolvency, then proposes to establish a legal mechanism of international cooperation in cross-border bank insolvency in order to promote the international cooperation in legal issues of cross-border bank insolvency. Accordingly, this article thinks about how China can engage in the legal mechanism of international cooperation in cross-border bank insolvency as our country and gives out some suggestions.