Juristic Researches On The Management System Of Financial Emergency

With the increasing of people's awareness of crisis and the development of the researches on financial risk and crisis, the word "financial emergency" has been mentioned among the financial sector more and more frequently. The basic signification of "financial emergency" can be generalized as follow: It is a sort of unexpected events which has been triggered by stochastic actors or systemic mistakes, has negative effects that may lead to a large area of systemic functional falling-off or lose among financial sector, and even can destroy the order of society and economy. There are some characteristics of financial emergency: occurs all of sudden; has been triggered by complicated factors; has systemic devastating power; must be settled as soon as possible; the controlling fiscal cost of it is great. Considering these characteristics of financial emergency, it is very important to find out how to build a management system for financial emergency among financial sector since it is a sector which has broad relations with society and provides broad services to the public.At present, the financial emergency management has been paid much attention to by many scholars in and out of China, but there are fruits in economic area more than those in jurisprudential area. In practice, financial emergency often has been managed by active interference from administrative power. This kind of irregular practice can hardly make the management of financial emergency efficiently. It is evident that the Rule of Law can provide are liable institutional guarantee for controlling emergencies. During the period of the emergency, it is easier to find out the defects of the legal system, which is covered during the normal state. Therefore, it is conducive to further improving the legal system and to promoting the Rule of Law by leaps and bounds. At the same time, we need to pay attention to the limits of rules that are made during the state of emergency, to adhere to the principles guiding the exercise of emergency powers, to establish new mechanics of law with the purpose of improving the Rule of Law in China. Therefore juristic researches on the financial emergency management have very important meaning both in theory and practice.The main frame of this paper is based on two parts: on the one side, before defining the meaning of financial emergency, analysis the relationship amongfinancial emergency, financial risk and financial crisis so as to build a foundation for the following discussing. The relationship among these three conceptions can be described like this: when financial risks are cumulated to some degree, they will lead to financial emergency, if financial emergency was mismanaged or beyond controlling, it will break out great systemic financial risks, and finally become serious financial crisis. The whole process of the financial crisis management can be divided to four phases: early warning, response and management, general treatment, recovery operating. Obviously, as financial emergency being in the early period of financial crisis, so the management of financial emergency is on the first and second phrase of financial crisis treatment-the early warning, response and management.On the other side, making the financial emergency management as a main clue of the whole paper, researches are carried out from four parts-early warning, activation of emergency management plan, hurry-up treatment, assessment and accountability working after treatment. The paper suggests that some hurry-up legal system should be set up for the four parts mentioned above. During the phrase of early warning, a forecasting and supervising system should be built for the sound working of the financial sector. During the phrase of the activation of emergency management plan, a procedure should be designed that demand the supervisor response to the financial emergency immediately and take necessary measures to control it in time, otherwise, the supervisor should be punished by law. During the hurry-up treatment phrase, in order to deal with the eme...