Research On The Exit System Of China's Small And Medium-sized Banks

In recent years, interest rate liberalization produces numerous opportunities to the commercial banks, while brings about increasing risk as well. It is possible for the appearance of the problematic banks. Finance is the central department of the national economy, and the banks play leading roles in the financial system of our country.Therefore, the existence of the problematic banks will bring a huge impact on our national economy, and may cause social instability. In our country, the four major banks have the protection of the "too big to fail", while many small and medium-sized banks can withdraw from the market without the occurrence of systemic crisis. So this paper which studies on the exit mechanism of the small and medium-sized banks has a certain theoretical and practical significance.Firstly, based on the theory of bank risk, this paper expounds the connotation of the withdrawal mechanism of the banks, and studies the main methods of small and medium-sized banks withdraw from the market. Secondly, taking the bankruptcy of Hainan Development Bank and Shenzhen Development Bank which had been acquired as examples, this paper summarizes the withdrawal mechanism of China's current small and medium-sized banks, including bank bankruptcy, merger and acquisition system,deposit insurance system and the bank creditor protection system.This paper also analyzes problems and causes of the exit system of small and medium-sized banks in our country, such as excessive administrative intervention, the single exit from the market approach, the missed asset pricing mechanism, the inefficient bank debt security mechanism. Then, this paper analyzes the international experience of small and medium-sized banks withdraw from the market, including the insolvency regime,mergers and acquisition system,national deposit insurance system and how to investigate the responsibility of relevant person. Finally, according to the analysis of theory and case, this paper puts forward the proposal of exit mechanism in our country, such as building bankruptcy law system of the commercial bank as soon as possible, expanding the market exit channels of small and medium-sized banks,striving to improve the degree of pricing of financial assets and the completing deposit insurance system etc.