Research On Standard Of Insolvency Of The Commercial Bank

Since the 1980 s,many countries in the world have begun to appear the phenomenon: the failure of commercial bank business and bank insolvency.And they established the relevant legal system addressing problems of bank insolvency.However,our country lacks relevant legal system and practical experience in this respect.Like general enterprises,commercial banks are the main competitors in the market,which will inevitably face the failure of competition.So they should withdraw from the market in insolvency law.The insolvency standards are the soul of the insolvency law,and the insolvency standards of commercial banks are of great significance in the commercial bank insolvency law.Due to the distinctiveness of the bank,the bank insolvency standards in most countries are not only applicable to the bankruptcy standards of general enterprise,but also to the special regulatory criteria.The provisions of insolvency standards of commercial banks in China are generally vague and lack of practical guidance.In this paper,the researcher discussed whether we should set up the distinctive insolvency standards system of commercial banks and how to improve it.Firstly,the researcher explained the conception of commercial banks insolvency and insolvency standards.Secondly,the researcher concentrated on the distinctiveness of commercial banks insolvency;then the researcher analyzed the limitations of “the criteria of balance sheet”,“the criteria of cash flow” on the issue of insolvency of commercial banks,and the unique advantages of regulatory criteria.Thirdly,the researcher compared the legislation system among the United States,Britain,Canada and other countries for the sake of learning some experience from them.Finally,on the basis of special matters in the banking industry of China that lack of the legal system of the commercial banks insolvency standards,the researcher gave some suggestions on the legislative perfection of the special insolvency standards of commercial banks in China,especially on the perfection of legislative coordination and regulatory criteria system.