On The Legal Issues Of Early Intervention Of Problem Bank

The banking industry plays an important role in the financial sector.The fragility of the banking industry and the huge impact on the entire financial industry make it necessary to prevent bank failures.China's banking industry is huge in volume,and the expansionary development after the reform and opening up has hidden many hidden troubles.It is not a long-term plan to rely on huge amounts of public funds to help banks in distress.If it does make bank bankruptcy at least not in line with current economic development in China.Therefore,it was inevitable to find and correct bank problems at an earlier stage.The purpose of the Bank's early intervention mechanism was to save and correct bank exposures before the banking industry was in a state of failure.The United States first established "Prompt Corrective Action" and achieved good results.Britain,the European Union,Japan and other countries and regions competed with each other.Following the example,the early supervision of the banking industry became a consensus.China continues to introduce advanced systems for the supervision of foreign banking,and the State Council and the China Banking Regulatory Commission have issued a number of administrative regulations and rules to enrich the banking industry's regulatory standards and regulatory measures.However,the following problems exist:First,there is no clear definition of regulatory scope,and early intervention mechanisms The concept is vague;secondly,the allocation of rights of supervisors is irrational,the functions of the China Banking Regulatory Commission are too concentrated,the responsibilities of deposit insurance agencies are lacking,and the macro-prudential supervision functions of the central bank are overrun;Third,there is no clear correspondence between regulatory standards and regulatory measures,and the freedom of regulatory authorities Excessive discretion.The US "Prompt Corrective Action" focus on the correspondence between regulatory standards and interventions.The intervention process is rigorous and clear;the "Proactive Intervention Framework" model of the UK preventive intervention framework is most similar to the current regulatory system in China;the guidelines of the Basel Committee provide More experience in the use of interventions.China should sum up our country's practical experience on the basis of lessons learned from extraterritoriality and shape early intervention mechanisms that suit our country's national conditions as soon as possible.First,we must re-delineate the division of responsibilities among the central bank,the China Banking Insurance Regulatory Commission and deposit insurance agencies,and give more depository institutions.The supervisory responsibilities of the regulators ensure independence and mutual restraint between the regulatory agencies.Second,they introduced the implementation rules of the early intervention mechanism,paid attention to the interface between the intervention criteria and intervention measures,defined the work flow,and achieved scientific and efficient intervention and correction;Establish supporting measures.for early intervention mechanisms,including recovery and disposal mechanisms and cross-border cooperation mechanisms.