Financial Institutions To Withdraw From The Market A Legal Mechanism

Under marketable competition and "survival of fittest" circumstances, it is an inevitable outcome for financial institutions to withdraw from market because of operation failures. This also commonly happens in developed countries and there already have been proper and effective withdrawing mechanism in them. But up to now there still hasn't a set of systematical and operative legal procedures to deal with financial institutions withdrawing from the market in our country. Under the market economy circumstances it becomes fairly urgent to study this theme. Because of the limited space, this paper does not discuss concrete legal systems on financial institution withdrawing from the market but emphasizes on its key legal mechanisms so as to afford the theoretical basis for its law system construction."Legal Mechanism" consists of two meanings, one is a comprehensive theory about the whole running of law and regulations, including shaping, performing effective adjusting to social relationship, the other stands for certain working methods and ways that the law has to adjust social relationship to some purposes. The former can be called legal mechanism in principle, and the latter called legal mechanism in operation. Accordingly this paper studies the legal mechanisms on the financial institutions withdrawing from the market based on the two meanings, i.e, it discusses the legal mechanism in principle, like proper interference, marketilization, share of losses and risks, etc, and moreover it apply these mechanisms to the ones in operation, like merger&acquisition, administrative closing and bankruptcy, etc.Besides preface and postscript, the paper with about 45,000 words, includes three parts.Part I: This part firstly defines the legal mechanisms of financial institutions withdrawing from the market and then contracts its value system: Order is on the first level, Justice and Efficiency should berealized on the second. Based on these, it then stresses the basic contents about the legal mechanisms in principal and in operation.Part II: This is the key part of the paper. Directed by value notion mentioned above and by using the methods of comparative analyses, economic analyses, games analyses and systematic analyses, the author emphatically uses the legal mechanism in principle to discuss related legal problems, such as choices of withdrawing forms, regulations to the rights and obligations of all parties during the course of withdrawal etc, in the legal mechanisms in operation of financial institutions withdrawing from the market like merger &acquisition, administrative closing, bankruptcy etc.Part III: Emphatically discussing the construction and perfection of several coordinative mechanisms (rescue measures dealing with financial crisis, deposit insurance system and information disclosure system) closely related to financial institutions withdrawing from the market, which will provide insurance to the usage of these legal mechanism.