A Study On The Take-over Of Financial Institution

With the gradual deepening of the development of market economy in China,financial institutions have mushroomed rapidly.As we all know,the production system of wealth is accompanied by the social production of risk.The internal attributes of financial institutions determine that the development history of financial industry is a history of crisis.The financial tsunami that broke out in 2008 from the United States swept the world,and the economies of all countries in the world were more or less affected by it.As the outbreak country of this economic crisis,the United States government and its financial regulatory authorities have been very effective in dealing with the risk of this crisis.Among them,financial takeover,as one of the means of financial risk management,has been fully played in this financial crisis,and successive takeover climaxes have emerged in all countries.Financial industry covers all aspects of a country's economy,ranging from banks,insurance to securities funds,and from its social responsibility attributes,including production,circulation,consumption and other links.Because financial institutions have already penetrated into all aspects of the economic field of various countries,which is related to the stability of a country's financial order,when problems arise in financial institutions,they can not be dealt with directly in accordance with the bankruptcy procedures of ordinary enterprises.Throughout the world,regardless of the attitude of the government or financial regulatory authorities towards bankruptcy,when financial institutions are in crisis,governments and their financial regulatory authorities generally prefer to take over rather than directly choose bankruptcy procedures for the sake of financial security.It is hoped that financial takeover can help financial institutions to serve business or trust crisis,restore their operational capacity,maintain the confidence of market participants in financial institutions,maintain the stability of financial order and avoid the turbulence of the financial system.Practice has proved that a sound financial takeover system is not only conducive to the day-to-day supervision of financial regulatory authorities,but also a powerful weapon for a government to cope with financial risks and prevent financial crises.Financial takeover system should be the proper meaning of a country's financial risk prevention and disposal.Our country also disposes of financial risks through takeover of problematic financial institutions many times in practice.From the Southern Securities takeover case to the subsequent takeover of NCI?ZSCIC and recently An bang Insurance Group were taken over.China's takeover system,as a risk management mechanism of financial supervision departments,has gradually emerged.However,there are few provisions on takeover of problematic financial institutions in China's existing laws and regulations,which are scattered in several legal provisions of relevant financial laws.There are neither detailed and specific provisions on financial takeover in legislation,nor systematic and unified arrangements.The legal system of takeover of financial institutions in our country is too framework,many abstract and principled provisions,many aspects of takeover are not even involved,often left to the discretion of the financial regulatory authorities.This may also be related to China's legislative tradition,that is,the emergence of legal provisions often goes through a process from abstraction to concrete.Legislation first only carries out framework provisions,through repeated argumentation of the market,and then the legislator perfects them.Specifically speaking,the main shortcomings of China's legal system of financial takeover are as follows: what is takeover,whether it belongs to the scope of administrative law or judicial power after all;on the conditions or criteria of takeover,the legal provisions in this regard are very vague and lack of detailed provisions;on the application for takeover.Subject,legislation hardly involves;the composition of the takeover group and the power and responsibility of the takeover personnel are also lack of provisions;The specific rescue measures that the takeover team can take in the takeover process are also unclear.As the saying goes,it is difficult for a skillful woman to cook without rice because of the lack of detailed provisions of the law.Therefore,in the process of takeover practice in our country,the takeover team has no legal basis but no legal basis.Financial regulators can only touch the stones and cross the river,resulting in many embarrassing situations of takeover.Therefore,the establishment and improvement of China's legal system of takeover of financial institutions has become an unsolved problem before us.For the purpose of perfecting our country's financial takeover system,this paper takes the topic of "A Study on the Takeover of Financial Institution-Starting from the case of An bang Insurance Group" as the topic,and discusses the following issues: the theoretical basis for financial institutions' takeover,the starting standard for financial institutions' takeover,the selection and power responsibility of financial takeover groups,and the specific takeover measures for financial takeover.By consulting the literature and analyzing the practices and legal provisions of risk management of financial institutions in foreign countries and Taiwan and Hongkong,the author hopes to provide some simple suggestions for the improvement of the legal system of financial takeover in China.