The Rescue Of Troubled Financial Institutions And Market Exit Mechanism

Since Asia broke out the economic crisis in 1997,the international and domestic economic risks have emerged continually. It is important to discuss, research and solve the problems that how to make decision, how to judge salvation, what efforts should be taken, how to make market exit and how to plan in law and policy system. In this article, by analyzing the domestic financial institutions with problems and using good international experiences for reference, we propose to set up a system, which is suitable for Chinese situation and joins the international rules, to salvage and deal with the financial institutions with problems.Besides the preface, there are five sections in this article. Section 1 is the summary of the financial institutions with problems, describes its definition, classification and relativity. In section 2, we describe the status of how the financial institutions with problems are dealt with in our country at present and the existing problems, analyze the experiences and lessons and the reasons of emergence of financial institutions with problems. Section 3 tells of the international experiences of dealing with financial institutions with problems, introduces experiences and lessons that how the Euro-American countries deal with financial institutions with problems. Section 4 introduces micro-operating of salvation and treatment of financial institutions with problems. According to the analysis in the above four sections, in section 5 ,we clearly propose to set up a mechanism of market exit and salvation of financial institutions with problems, which is suitable for the Chinese economic development. We propose a frame of mechanism of market exit and salvation of financial institutions with problems, and many other suggestions on diagnosis, decision-making, salvation, market exit and legal system environment.Research has indicated that at present, with the globalization of economy, it has very important and practical meaning on the healthy development of the financial industry of our country to do research on the mechanism of market exit and salvation of financial institutions with problems.