Bank Failures Of Public Policy And Institutional Support

Banking system plays an important role in the national economy. However, so far no country can completely avoid the emergence of bank bankruptcy. In the market economy, banks are required to comply with the rule of market competition which is called"survival of the fittest". After all, banks are much different from other businesses. They are unique for their capital structure, assets management and risk-taking and so on. All of these bring about the differences between bank bankruptcy and the general corporate bankruptcy. The particularity of bank bankruptcy demands that the foundation of bank insolvency law system should aim to achieve the objective of public policy. At present, laws and regulations for bank bankruptcy in China are fragmented and lack of maneuverability, so that the disposal of bank insolvency is in chaos. Therefore, it is urgent for us to establish bank bankruptcy law system which takes the particularity of banking institutions into account. China Banking Regulatory Commission is redoubling its efforts to formulate banking institutions bankruptcy ordinance with building on sophisticated foreign bank bankruptcy law indispensably. In this paper, the public policy for the bank insolvency is explained and studied as the core. The public policy of bank bankruptcy is analyzed and discussed comprehensively and in-depth on the basis of a mass of domestic and foreign research data. Doing above all, the author expects that these will help for the bank insolvency legislation and the actual judicial practice.This main body consists of four chapters.The first chapter focuses on the particularity of bank insolvency. By comparison to the general enterprises, this chapter firstly expounds the characteristic of banks and their specific function in economy, and then sums up the four characteristics of bank insolvency.The second chapter focuses on the public policy and principle of bank bankruptcy. First of all, the author explains the concept of public policy, and then presents the two main ways in which the public policy will be worked out: establishing a special bank insolvency regime and calling upon assistance from government. All rivers run into the sea: the former is manifested in the legal system-level design, while the latter emphasize on direct assistance to banks form the government by administrative means. Both of them pursue the maximization of public interest. The end of this chapter deals with the rour cardinal principles which determined by the public policy of bank bankruptcy.The third chapter supports the argumentation of this paper from the analysis of concrete law system, including: rectification of violating prudential supervision; managed control of bank management; the reasons for bankruptcy; the opening of bank insolvency proceeding and deposit insurance system etc. This chapter focuses on the research and introduction of concrete system of bank bankrupt public policy in main nations.In the fourth chapter, the author puts forward his suggestions on the forthcoming bank bankruptcy legislation on both macro and micro levels, integrating with the characteristics of Chinese banking system and its problem reflected.The end of this paper is the summary of the main opinions.