Legal Issues Of Commercial Bank Failures

Commercial banks as the main bodies of nations' financial system are necessary products of commodity economic. Commercial banks as enterprises of public deposit, Their business relate with national economic and daily lives of human, therefore the legal relationship with commercial banks are more complicated than normal enterprises.Commercial banks bankruptcy mean that commercial banks stop managing at certain capacities, lose legal personality thus withdraw from the market. Its key characteristic is shown as the lapse of the legal personality of commercial banks. The particularity of the banking and special position in social economic development of commercial banks determined that it is different from comparing the bankruptcy of ordinary enterprises with that of commercial banks. In order to steady financial order and even society order, it is the key to solve the problem of debts properly in the course of bankruptcy of the commercial bank. The implementation of the bankruptcy of commercial bank requires careful legal system to support objectively. Ensuring financial safety and promoting financial developments are the double goals for legal system of the bankruptcy of the commercial bank.Compared with country of market economy, China's existing legal system of bankruptcy of the commercial bank also has much weakness. we should perfect the legal system of dissolution and bankruptcy of the commercial bank, perfect dispersion and compensation mechanism of the problematic bank, perfect supervision mechanism and risk warning mechanism of the commercial bank, and be positive to bring about conducive legal environment for the development of small and medium-sized banks.In the system of bankruptcy of commercial banks ,the balance between financial security and financial development must be concerned .