Study On The Market Exit Mechanism Of Private Bank In China

As an important part of financial system reform in China, the role of private bank cannot be ignored. Compared with state-owned commercial banks, private bank has its own characteristics in the ownership structure, business management or business scope, the design of private bank should be different from state-owned commercial banks. According to the characteristics of the private banks, the design of the legal supervision system should comply with its future development requirements to ensure the safety operation of private banks. Private bank is allowed to set up and it is facing challenges like interest rate liberalization or Internet finance and high business risk, especially operational risks. Most customers of private bank are small and micro enterprises, it means private bank have to develop business which big banks do not want to develop, while these business areas are usually low in profit or high in risk. At present, we do not have a market exit mechanism of private bank to provide systemic risk. The private banking market exit is a complex problem involving multiple interests, it easily cause a system risk and threat the security of the entire financial system. The construction of exit system of private banking market must be cautious.This article has a deep study on market exit mechanism of private bank in china. The first part summarizes market exit mechanism of private bank, mainly defines private bank, market exit and discusses the necessity and particularity of establishing market exit system of private banks. Next, this article discusses the necessity and framework of the private banking withdrawal legal system. And this article mainly discusses the legislation and practice of the withdrawal of the small and medium-sized banks in the United States, Germany, Korea and Taiwan of China, and provisions of the international organization on the withdrawal of the banking market. Subsequently, this article analyses the practice and problems of China's banking market exit from the point of legislation and practice to provide the reference of setting up the exit system of private bank. The last part gives some suggestions about how to establish market exit mechanism of private bank from several perspectives: legislation, supervision, mechanism perfection.