On The Improvement Of The Rules Of Commercial Banks’s Bankruptcy In China

The financial crisis has not dissipated, the European debt crisiscomes one after another. Faced with a crisis in the world financialenvironment, China’s financial industry has not been enormouslyimpacted, but there is a potential danger for China. In retrospect of thedomestic environment, with the reform of the marketization of interestrate, the fierce competition between commercial banks increaseseveryday. In the increasing fiercely competitive environment, there willbe inevitable failure of management of commercial banks. Therefore,how to ensure that the bankrupt commercial bank exit the marketeffectively, is a question worth considering.The commercial bank is the core of the modern financial industry,and the commercial banks’ development is related to the stability of thefinancial system, economic development and social stability. Due to the commercial bank’s bankrupt conductivity and the negative externality,the single problem of the bankruptcy of the commercial banks is nothandled properly, and it will affect the stability of the whole financialsystem. Therefore, all countries in the world tend to regulate thecommercial bank’s bankruptcy,which differs from ordinary enterprises,and adopt a variety of measures to ensure the effective withdrawal fromthe market, optimize for the commercial banks to optimize the financialenvironment, and to maintain the stability of financial system.At present, China has not yet established a special legal system ofbankruptcy of commercial banks."Enterprise bankruptcy law" show theprovisions of article134th that financial institutions, commercial banks,securities companies, insurance companies,etc are applicable to the"enterprise bankruptcy law" out of the market. At the same time,considering the particularity of financial institutions, the State Councilcan implement and formulate the measures according to the provisions of this Law and other laws. In addition, there are "commercial bank law","company law","the banking supervision law","prevention and disposalof financial institutions to pay interim risk approach" and other laws andregulations, and regulations on bank insolvency rules. But theseProvisions are too principle and lack of generalization andmaneuverability, and these Provisions scattered in various levels of laws,regulations, rules, and lack the perfection on the regulating system ofbankruptcy of commercial banks. In this paper, by drawing on foreignexperience, combined with the special nature of the reality of our countryand the commercial bank bankruptcy, I proposed the perfection on thebankruptcy legal system of our country commercial banks.This paper is divided into five parts. The first part analyzed thestatus of disperse system legislation and crude law legislation of China’scommercial banks’ bankruptcy, and proposed to regulate the legislationof bankruptcy of commercial bank and the deposit insurance system in the "commercial bank insolvency law" provisions in Chapter, and to theformulate the standard system of commercial banks insolvency. Thesecond part, mainly is to reset commercial bank insolvency proceedingsof our country. The third, fourth, and the fifth part is the important partsof this paper, mainly analyzed and discussed the commercial bankbankruptcy, liquidation system, deposit insurance system. Based on theoversight analysis of China’s commercial bank bankruptcy reorganization,firstly, it proposed to perfect the effective combination of twoaspects,which is entrusting the right of application to the bank regulatorsand reforming measures with the administrative assistance. Secondly, inthe section of the bankruptcy liquidation, it analyzed that the current lawon the liquidation have only a general provisions, which lacks specificoperational measures, and put forward that the procedure of bankruptcyof commercial banks should follow the deserved principle, and identifyand confirm the personal savings deposits, and refine the measures of bankruptcy set-off rights, and rearrange the liquidation order. Finally, thesection of the deposit insurance system analyzed the necessity of depositinsurance system, designed the deposit insurance system in China, andregulate the prompt obligations of deposit insurance payment as well asmake a clear of the bankruptcy administrator, and realized the processconnection of the deposit insurance system and the commercial bankbankruptcy.This paper used the method of comparison and the progressiveargument in the proof process, and took the bankruptcy proceduredevelopment as the main line. For various aspects of legislation anddefects in China, combined with China’s national conditions,we learnfrom foreign experience, and put forward legislative suggestions andsolutions.