On The Legal System Of Rescuing Problem Banks By Deposit Insurance Institutions

The emergence of the problem banks is the result of the financial crisis. It is an important issue to find an effective way to rescue problem banks nowadays. Good effects will be produced if deposit insurance agency could rescue problem banks. As a result, public resources will be saved as much as possible. And moral hazard will be reduced in the process of rescuing. In this case, the normal business activities of problem banks can be recovered in time, which is good for the stability and development of the financial market. At present, the promulgation of Chinese deposit insurance regulations highlights the importance of practical way to rescue problem banks by deposit insurance agency. Therefore, it has a positive theoretical and practical meaning to do a legal research on the legal system of rescuing problem banks by deposit insurance institutions.This article is divided into the following aspects on this issue:Chapter one raised the main issues and gives an introduction to the related research background and research methods.Chapter two includes the theoretical research on the deposit insurance system and the deposit insurance agency. Then it analyzes the rescue methods of problem banks at this stage to explain the necessity of rescuing problem banks by the deposit insurance agency.Chapter three analyzes the new demarcation of problem banks by deposit insurance agencies and points out the scope of problem banks rescued by deposit insurance agencies.Chapter four introduces several measures for deposit insurance agencies to rescue problem banks:paying box assistance, finance assistance, assistance of taken over by the government and the assistance in the bankruptcy reorganization.The last chapter draws a conclusion.