Disposal Of Problem Banks Choose And Impact Factor Analysis

Failing banks have great negative effect on the efficiency of the whole economy. When failing banks appear, especially in financial crises, the government would not just let it be and will intervene to stop the crisis to prevent the disastrous impact on the economy. This paper mainly focuses on the resolutions and the choice of resolutions by the regulatory agencies. With the entry into WTO, the Chinese government has made a promise to open the renminbi business to foreign banks. And this will surely enhance the competition in the market. As a corollary, some banks shall fail, and some shall prosper. The failing ones shall be rightly handled by the government or the regulatory agencies.The object of this paper is, first, to define the economic and non-economic factors that influence the emergence of the failing banks and to what extent; second to find out the principles and procedures the regulatory should comply with when they handle the failing banks and analyze the factors that determine the choice of resolutions by the government or the regulatory agencies.The main body of this paper is as follows:In chapter one, this paper looks back into the previous papers to find out the reasons why the bank fail as a logical start of handle the failing banks. Failing banks flood in the financial crises so this paper includes the archives on the financial crises. The definition of failing banks includes the assets, liabilities, capital adequacy, management and liquidity. And this chapter analyzes the reasons from the aspect of assets, liabilities, and empirical evidences.The second chapter analyzes the principles and the procedures of the resolutions when the regulatory agencies handle the failing banks. First...