Special Legal Research, The Bankruptcy Of Commercial Banks

"Survival of the fittest" is the rule of nature, and it is the objective principle ofmarket economy. As a special enterprise, commercial bank must obey such principle, too.Under marketable competition, it is an inevitable outcome for bank to withdraw frommarket because of operation failures. With the advancement of monetary system reformand the comprehensive opening of financial field in our country, the insolvencypossibility of some poor operation banks has become increasing. Compared withcommon enterprise, commercial bank has its remarkable particularity. Such particularitymakes commercial bank must apply different rules when it becomes insolvent. Thisthesis is just based on such special legal question to study. The thesis consists of preface, text and conclusion, and there are four parts in mainbody. Part one is the knowledge of particularity of commercial bank. This part analysesthe trait of managing the bank with a high loan, the frailness of the bank itself, theinfectiousness of banking crisis and the strong external diseconomies of bank insolvency.Then drawing a conclusion: just because of such particularity, bank insolvency shouldapply different rules from common enterprise. These rules constitute the special legalquestions of bank insolvency. Part two discusses the applicable law of bank insolvency. First, this part introducestwo models of bank insolvency act in the world: applying general insolvency law orspecial law, then evaluate these two models briefly. Second, it analyses the currentlegislative situation in our country and point out the main drawbacks. Finally, itsummarizes four schemes and selects the most reasonable one by considering manyfactors. Part three compares two important procedures in bank insolvency saving institution,receivership and reorganization. This part studies the similarities and differences betweenthe two procedures, the possibility of their conflict and the reasons that apply eachprocedure. Finally, this part tries to find a way to coordinate the two procedures byconsidering the reality of our country. Part four analyses the special rules in the stage of bankruptcy liquidation. Thecontent involves the bank's capacity of insolvency, the cause of insolvency and theapplicant of insolvency; the election and duty of insolvency assignee in bankruptcy; theprinciple and order of distribution of bankruptcy property. Then, some legislativesuggestions are offered on the basis of chinese current legislation. The conclusion of this thesis summarizes the author's basic thoughts and legislativesuggestions on the applicable law of bank insolvency, the selection of receivership orreorganization institution and the special questions in bankruptcy liquidation. In the course of demonstration, the thesis adopts the progressive and comparativemethods of argumentation. All parts are connected by the special legal questions incommercial bank insolvency. Aiming at every special legal question, the thesis putforward legislative suggestions to make every parts has its relative independence.