Disuss The Disposal Of American Weak Banks And The Enlightenment To China

How to deal with the weak banks is the most difficult problem to each government, though we have summarized lots of experience and principles, even the most mature supervisor can't take the best resolve project for the impersonal condition. China has made huge progress since the finance reform, but it still has many disadvantages in how to dealing with weak banks. America has abundance experience in dealing with weak banks, so we had better learn from the America.The first part introduces selection of subject background, related theoretical foundation and research synthesis. For our country's banks inherited an oligopoly patterns, Chinese government has to take rescue of a solution. Practice has proved that if we can't close weak banks in serious condition timely, we will increase costs for the subsequent exit, even threaten the stability of the whole financial system. China faces the problem of inefficient banks and weak banks unable to effectively exit from reality, the urgent need to establish appropriate mechanisms. Weak banks difficult to exit from financial markets, states have to use appropriate treatment to deal bank crisis, to avoid failures, maintaining stable economic operation. But weak banks must exit. The basic principle is deal with the weak banks in lowest cost. When financial supervisor make arrangements for a disposal system, they will choose a smallest cost arrangements.The second part is mainly about America early warning systems and...