The Application Of Preference Shares In Bank Crisis Relief

Bank security is related to the financial industry and even the stability ofeconomic stability.However,the risk of bankhas the characteristics of "systematic","infectious" and "spillover".Once the banking crisis,especially for banks with systemic importance,it may lead to financial crisis and affect the national economy safe operation The 2008 financial crisis,the global banking industry have suffered varying degrees of damage,while the European banking industry is still not fully recovered after the crisis,deepin the "debt crisis" in rencent years.China's banking industry due to low dependence on foreign and there is a strong national implicit guarantee,so that China's banking industry in the crisis can survive.However,in the history of China's banking industry due to lack of capital and non-performing assets also faced several crises.Premier Li Keqiang in the "2017 government work report" stressed that,in recent years,the international financial market volatility,the domestic economic downward pressure increases and the current systemic risk of banks can be controlled on the whole,but the bad assets,bond default,shadow banking,Internet finance and other accumulation Risk should to be highly vigilant.When banks arein crisis,governments often use various means to rescue banks.But government bailouts are generally faced with "too big to fail" to trigger moral hazard problems.China has long used government intervention,such as financial injection,central bank loans and other means to rescue banks,But the government's excessive intervention can lead to various problems,such as market equity,bank independence and so on.Fundamentally lies in the lack of market-oriented disposal of ideas and means,the lack of orderly disposal of the way,the bank self-help arrangements and public funds cost recovery concept.The so-called market-oriented disposal that is to reduce government intervention and give full play to the ability of banks to self-help,the use of market allocation of resources to orderly disposal or rescue banks in order to effectively balance the interests of the main.The financial crisis in 2008 countries have taken various measures to rescue crisis-stricken banks.In a series of measures to action,the value of preferred stock in the banking crisis relief has been widely recognized.The United States,Britain,Japan and the Nordic countries used the preferred stock tocapital injection to save the bank.Banks.The bank itself is also more likely to issue preferred stock to the market forcrisis financing.Post-crisis era,the international financial regulatory authorities have strengthened the supervision of bank capital,stressing that new capital replenishment tools must have the ability to absorb losses,and the preferred stock capital instruments that meet the new eligibility criteria are focused.I believe that the way of preferred stock rescuing banks in line with the trend of marketization bailout bailout,orderly,private relief.The preferred stock can be used to restore the bank's self-help ability through the rapid recovery of capital in the early stages of the crisis.With the deepening of the crisis,it is better to raise funds in the market than the liabilities and common stock.As a tool of government capital injection,it can reflect the advantages of minimizing cost,restricting bank governance and preventing bank nationalization.This paper studies the application of preferred stock in bank crisis relief under the above background.The first chapter of this paper starts from the dilemma of the bank crisis which exists in our country bank,and further analyzes the legislation and practice of China's banking crisis rescue,and sums up the problems of China's banking crisis rescue.Indicating that China's institutional and practical reserves can not cope with the plight of banks under the new situation.Secondly,analyze the definition and classification of preferred stock,and for the realization of the function of relief,explains the nature and property of preference shares,and introduces the corresponding preference of the bank preference shares in the legislation and practice experience.The second chapter mainly discusses the current domestic and foreign legal framework and the banking supervision requirements.Fromthree aspects,"The framework of bank recover and dispose",the "Basel agreement III" and China's "deposit insurance regulations" three aspects,to find out the coordination between the preferred stock and the legal framework of the bank bailout.The third chapter mainly discusses how the preferred stock should locate and play the function in the bank crisis rescue.I believe that it should be positioned as qualified capital instruments,crisis financing tools and government capital injection tools.Clarify the logic behind the positioning of various types of tools,mainly through the analysis of its rescue bank crisis is reflected in the specific aspects of the bank involved in the rescue,what time to rescue and how to rescue to share the different relief functions of preferred stock.Chapter 4 deals with the construction of specific systems.Dividespreferred shares the into two categories to discuss.The preferred shares issued before the banking crisis,and the preferred shares issued during the banking crisis.From the research of issuance mechanism,the basic terms,the core terms and the supplementary provisions of relief and other aspects,trying to build a complete set of preferred shares to rescue the banking crisis system.In addition,analysis and comparison of the different provisions of the preferred stock with different rescue functions in the system to explain why they have different functions.Finally,the paper puts forward some problems that should be paid attention to if we want to use the bank crisis rescue.