Foreign Banks Withdraw From The Market A Number Of Legal Issues In The Regulatory Mechanism Study

A number of leading investment banks and commercial banks failures in the financial crisis, which is triggered by U. S. sub-prime mortgage loan crisis. As we known, after China entering WTO, foreign banks become an important part of the Chinese financial system. However, the supervision of foreign banks in China, especially legal supervision about the market withdrawal of foreign banks only provides principle regulation, and some even lack the regulation. In this article, I will discuss some issues about foreign banks market withdrawal with methods of comparative study and the legal interpretation study. On the base of the advanced experience from developed countries and regions, I will propose some suggestions about improving Chinese legal supervision system for foreign bank market withdrawal.The value of legal supervision mechanism of foreign bank market withdrawal including the definition of foreign banks and the content of market withdrawal of foreign bank, the history of the development of foreign banks in China, and further explore the positive significance of market withdrawal of foreign bank under the current situation. As a part of financial safety net, deposit insurance system has played an important role in improving the public confidence and preventing systematic financial crisis and safeguarding stability of the financial system. China has not established explicit deposit insurance system. I will study this system from the main body, functions, objects, targets, limits and rates based on the experience of developed countries. As the last defensive line of financial safety net, the international lender of last resort system will response for the lender of last resort on the basis of a common supervision between home and host countries, preventing systematic banking crisis. Crisis management system is the concrete implementation of the deposit insurance system and lender of last resort system, including to takeover and reorganize and bankrupt the problem foreign bank.