Study On The Legal Issues Of Government Rescue To Systemically Important Financial Institution

Finance is the core of modern economy, systemically important financialinstitution as a main part of financial system, whose stable management is essential tothe development of economy. When financial institutions make the creation of thecredit for our community, they combine many risks because of the drawback offinancial regulation and low regulatory level of government. Risk as a possibility ofloss, when financial institutions’ risk over a certain standard, the financial institutionis likely to become a problem financial institutions. If government don’t offerproperly rescue to the problem financial institutions, it may spread the risk to theentire financial system, which resulting in the outbreak of financial crisis and then thesocial economy will suffer significant losses. Therefore, make a research about legalissues of government rescue to financial institutions is very necessary. This paper isdivided into four parts, the first chapter talks about what is systemically importantfinancial institutions, its evaluation criteria and scope, and then discusses the impactof " too big to fail " to government rescue, finally overview the basic source of thefinancial risk and the necessary of government rescue to financial institutions. Thesecond chapter talks about the government rescue to financial institutions from threeaspects, which include the concept, the measures and specific issues. The thirdchapter considers China’s current system of financial institutions and puts forward the necessity of establish a system of government rescue to financial institutions withChinese characteristics, and then puts forward how to build it. The fourth chaptersummarizes all the paper.