An Essay On The Bankruptcy Of The Commercial Organ

Due to the key role of commercial bank in the economy, various countries attempt to construct legislation in order to constitute a cautious and expeditious mechanism of resolving banks in financial difficulties. As a prompt and effective way of resolving insolvent banks, insolvency reorganization not only maintains the stabilization of the financial system, but also allows the market----withdrawal of banks, which no longer operate competitively, thereby promoting the optimal allocation of scarce economic resources. Therefore, the insolvency reorganization of commercial bank is an appropriate arrangement of mitigation of banking risks. Thus a fundamental provision has been constituted in the law of the People’s Republic of China on the Enterprise Bankruptcy, which implies an extra practical and immediate significance towards the insolvency reorganization regime for commercial banks.Upon studying the foreign legislation and practice, this paper analysis the concept, mode and procedure of insolvency reorganization for commercial banks, discussing the establishment of regime on the basis of national conditions. It also puts forward several suggestions on the mechanism of insolvency reorganization for commercial banks in China. The paper is composed of preface, text and conclusion. The text includes four chapters.Chapter1:This chapter is the introduction of this paper. It introduces the background of the research on insolvency reorganization for commercial banks, then explaining the content purpose and significance of the research, at the same time clearing the method used in this paper, making a brief introduction about the overall research.Chapter2:Discussion of the reasons why the insolvency reorganization regime is applicable for commercial banks and the comparison between two legislative modes of insolvency reorganization. This chapter introduces the positive significance of insolvency reorganization for commercial banks through illustrating the particularities of bank insolvency. Besides, it introduces the existing insolvency reorganization regime. It then concludes the national conditions are vital to the selection of legislative mode of insolvency reorganization for commercial banks, which is sustained by the demonstration.Chapter3:From a macro perspective, getting the recommendation of the establishment of insolvency reorganization regime for commercial banks in China. This chapter initially expands on the significance and legislative status of the bank reorganization regime in China. It then asserts the basic foundations behind the construction of the bank reorganization regime in China, which are essentially positioned to value orientation, legislative principles as well as power structure. In the end, it proposes that the insolvency reorganization regime for commercial banks must be coalesced with the receivership and reorganization of banks.Chapter4:Detailed recommendations of the mechanism of insolvency reorganization for commercial banks in China. On the basis of the law of the People’s Republic of China on Enterprise Bankruptcy, this chapter systematically researches the mechanism of bank reorganization, including its application and censorship, and organizational setup during the bank reorganization period. It also examines the institution and implementation of the reorganization plan as well as the finality of the bank reorganization procedure, which intends to ensure the enhancement of the relevant regulations regarding the bank reorganization process.