Research On The Legal System Of Bonds Of Commercial Banks That Can Be Written Down

Published by the Basel Committee after the global financial crisis,"the Basel Capital Agreement ? "put forward higher requirements for quality and quantity of bank's capital,and suggested that banks should have higher absorption capacity of capital loss.In order to implement the capital requirements of the agreement,some countries in the Europe and America have also revised the relevant laws and issued contingent bonds and bail-in debts.China also referred the bonds with write-down or debt-to-equity conversion in the event of a trigger as qualified capital instruments.In 2013,some commercial banks in China issued bonds with principal write-down.This paper aims to study these bonds of banks from the standpoint of law.The first chapter elaborates the basic meaning of the bonds,first analyzes the definition of the bonds,and briefly analyzes the differences between it and similar capital tools.Secondly,it introduces the background of financial crisis,the need to strengthen financial supervision,the legal characteristics of the bonds and their functions such as preventing crisis.The second chapter expounds the measures taken by some countries in Europe and America,including the loss absorption mechanism and the trigger mechanism,and analyzes the bonds from the perspective of financial safety,financial efficiency and financial fairness.The loss absorption mechanism should realize the principle of fairness.The third chapter introduces China's legal system arrangement and issuing situation,and reflects from the conflicts of loss absorption mechanism with the current legal system,the lack of investor protection and risk management.Then,the author suggests to modify relevant laws and regulations for the loss absorption mechanism,improve the trigger mechanism to strengthen the protection of investors,build risk supervision mechanism.