The Legal Mechanism Of Financial Institution To Withdraw From The Market

Financial market plays a key role in a country's economy, affected directly by legal environment. Systematic risk exists therein, and only a valid retreat system can prevent the transference and expanding of financial crisis. It has been four years since the entrance into WTO, during which China's financial market has been facing the challenge of opening and liberalization, thereafter, though the chance has been mature, whereas without sufficient preparation. As a result, time is due for reform, the focus of which should be the consummation of its legal regimes. The bankruptcy law of PRC is gonging to be promulgated soon, however, bankruptcy of financial institutions has its own characteristics, which make it different from bankruptcy of those common business entities under the present State-owned Enterprises' Bankruptcy Law of PRC. In consideration of this, it is more adapt to call this "withdraw from the market". The creation and introduction of a new system needs analysis of this kind of the foreign systems. Hence, this article contributes great effort to disclose the factual situation in China from legal perspective, and to illustrate the existing problems, as well as to propose a practical financial institutions retreat system matching the facts of China.