A Research On Perfection Of Legal Institutions Of Bank Receivership

Banks are crucial to a country’s financial system, especially in the backgroundthat finance develops rapidly, the problem that how to dispose Banks’ risk isbecoming very important. As a means of risk disposal, receivership will play a moreeffective role. Receivership will be adopted when a bank’s worsening operatingcondition or its bankruptcy is likely to damage the depositor’s interests, threaten thefinancial system’s security and stability. Receivership coincides with some riskdisposal means, and is also different with those similar means. In developed countries,legislation on receivership is more detailed and specific, whereas our currentlegislation about receivership is more generalized, lack of practical operability andguiding. Therefore, this paper study on how to improve the receivership legislationabout China’s commercial bank, basing on China basic national condition and legalstatus, and learning from the advanced experience of developed countries.This paper is composed of three parts including the introduction, the body andthe conclusion.In the Introduction the author briefly state the background of the topic and thetheoretical and practical importance of this thesis, and then review existed study onreceivership. Research tool is also introduced in this part.The Body is divided into four chapters:The first chapter describes some basic issues of our commercial bank’s receivership. The author firstly introduces the concept of receivership, then comparethe receivership with other similar risk disposal means to indicate the feature ofreceivership, Lastly points out current receivership’s defects, including receivershipstandard, procedure, receiver and receiver’s right and liability.The second chapter discusses the standard and the start of receivership. Theauthor compares two different legislative systems about the standard of receivership,and recommends combining the superiorities of those two legislative systems.“Minimum cost”, public interest and finance security should be considered as theprinciple of formulating provisions about receivership standard. About the start ofreceivership, the author discusses about several issues, including the receiver, therelief procedure while the decision to adopt receivership is opposed.The third chapter discusses the eligibility of a receiver, explains some main wayof how to choose a receiver. At the meantime, the scope of receiver’s right is alsodiscussed in the chapter.The fourth chapter mainly discusses receiver’s responsibilities. Firstly the authorinterpret theoretical basis about receiver’s responsibilities; then discusses concretecontent of responsibility from three aspects, including the responsibility to regulatoryagency, the responsibility to the bank and its shareholder, and the responsibility todepositor and creditor.The conclusion highlights the standpoint of this paper and sums up the directionof future..