China's Commercial Banks To Withdraw From The Market The Legal System

The financial system is the basic element of the modern market economy. The core of the financial system is bank which situation determines whether the market economy operates smoothly largely. A sound financial supervising system is based on the perfect legal system yet. The legal supervising system of market withdrawal of commercial banks is so indispensable in the modern financial system that it must be the sticking point of legislation. Traditionally, compared with the research on the legal system of market access and operating of commercial banks, the research on that of market withdrawal of commercial banks has been of less importance. Currently, rules relating to the legal system of market withdrawal can be found in some financial laws and regulations such as rules regarding the disbandment, the dissolution, and the bankruptcy. However, such rules are not centralized and systemic resulting in some conflicts and discrepancies among them. Besides, these rules are mostly too principle and lack practical nature. There are also some areas that yet to be covered by the rules. These deficiencies is very the shortcoming of the effective supervising. The looser controlling system of Chinese financial market subsequent to the opening up of Chinese financial market. The worse situation above mentioned makes the researching of the legal system of market withdrawal of commercial banks is also of practical important.The article begins with the general theory of the system of market withdrawal of commercial banks, it goes on to state the theoretical basis and the practical basis of the system, it further analyses the value of the legal system and introduces the legal system of market withdrawal of the commercial banks of major countries. In accordance with the above and the laws and practice of China, the article summarizes the contemporary system of the legal system of the market withdrawal of commercial banks in China and reviews several prevailing issues. It brings forth some advises on the perfecting and improving of the legal system with reference to the experience of the western countries and the practice of the China.The author is of the view that the legislative should concern the safety and efficiency of financial market. However, the former is more important. The article describes the basic procedures for the legal system of market withdrawal and explains the main content of the legal system such as the joint and mergers system, the bankruptcy system. The author also consider that the legal system is a comprehensive system which involves some supporting measures such as takeover and reorganization system, the deposit insurance system, the lender of last resort system and the information disclosure system.