Legal System Research Of Chinese Commercial Bank Bankruptcy Reforming Supervision

The financial crisis that originated in United States and rapidly spread to the global has heavily smashed their financial system, which caused the global economic recession. This indicated that the legal system of financial supervision has huge problems; countries carried out reforms and the supervision management reform for banking industry is the key point of financial supervision system reform and improvement. Nowadays, as the Chinese banking industry is comprehensively open, the transnational financial institution as the foreign banks are entering Chinese market and gradually obtain the national treatment. Therefore, the market competition becomes more fierce. In the meantime, the development of financial globalization fully shows the banking supervision systems of countries are interacting and interpenetrating; hence, the commercial banks in China cannot manage alone. For these reasons, China should actively carry out the reform and improvement of commercial banking supervision.In the market-oriented economy environment, the commercial banks as the special enterprises are inevitably bankrupt due to difficulty in operation and debt crisis. However, for a long time, the government use taxpayers’money to pay for banks with problems which completely against the market economy laws and adverse to the healthy development of banks. Meanwhile, considering the social communality of commercial banks and the contagiosity of banking crisis, once there are problems, the public credit crisis will trigger the squeeze and drawings which will lead to systematic financial risks. Given this, countries take active reforming rescue measures in the first place to avoid directly entering bankruptcy liquidation procedure and to protect depositors’interests in a greater degree. Therefore, establish the reforming system and prefect the bank bankruptcy reorganization are critical. Currently, the laws, administrative laws and regulations, rules regarding China’s bank bankruptcy reorganization are independent and scattered; among which the regulations regarding commercial bank bankruptcy reorganization are scanty with no practical operation procedure. The law of principle but lack of systematicness and pertinence have limited guidance to practice, the supervision institutions lack of have legal ground when practicing in commercial bank bankruptcy reorganization. In order to perfect China’s banking supervision system and maintain the financial stabilization, great attention should be paid on the establishment and improvement of commercial bank bankruptcy supervision.This essay is in four parts, the first part introduces the relevant theory of commercial bank reforming supervision, including the concept and significance of commercial bank reforming, the necessity of bank bankruptcy for commercial banks. The second part states and analyze the current legal situation of China’s commercial bank bankruptcy reorganization supervision and to fine out the dilemma. The third part studies the commercial bank reorganization supervision legislation of major foreign countries, and mainly analyze and summarizes the useful parts of commercial bank reorganization supervision legislation of typical countries as United States, Great Britain, Switzerland and Japan so as to formulate the legal advises subjected to China’s commercial bank reorganization supervision operation discipline. The fourth part comparatively analyzes the foreign commercial bank reorganization supervision legislation experience and put forward the advices for China’s improvement.