Research On Standard Of Insolvency Of Commercial Bank

Since the end of last century, the insolvency of bank financial institutions appears on a large scale in the world. There is not even one commercial bank has gone bankrupt by now, but no country can avoid it. People in our country usually think ban will never go bankrupt. But now bank “is big and can go bankrupt” instead of bank “is big and will not go bankrupt”.As the demarcation to start insolvency procedure, scientific and reasonable insolvency standard can be beneficial to the bank insolvency institution. Because of the particularity of bank, most countries use regulatory criteria as the specific standard of bank insolvency. Regulatory criteria reflect the theory of “prevention first” and it is beneficial for regulators to give play its professional knowledge; regulatory criteria is beneficial to protect the right of creditors; regulatory criteria are flexible and they can change based on financial situation and social development. Although the opinion that regulatory criteria should be introduced generally recognized in academic realm of our country and this standard was adopted by most other countries, it has not be introduced so far. So the problem is worth discussing that if China should establish and how to design the regulatory criteria suitable for our country.The author first analyzes common insolvency standard and demonstrate common that insolvency standard is insufficient to prove bank insolvency problem; state special insolvency standard——the connotation and its advantage in bank area of regulatory criteria. Second, the author analyzes laws, regulations and regulatory policy about regulatory criteria of America, England and Canada; compares legislation characteristic and difference of each country and conclude the generality of each country’s legislation. Third, the author analyzes the realistic basis of the foundation of institution. The realistic basis includes the particularity and risk of banks in our country; the basis of the foundation of institution includes existing bank insolvency system, regulatory system and the deposit insurance system. Lastly, the author establishes the system of commercial bank insolvency standard of our country: About the imperfection that present legislation cannot satisfy the specific requirement of bank insolvency standard, on the basis of existing upper legislation and realistic national conditions, the author designs the system of commercial bank insolvency standard of our country. And the author focuses on demonstrates the approach to link up and fuse regulatory criteria and present regulatory system of our country.