Studies On The Bank Closure Strategy From The Multi-angles Of View

The closure of problem bank as the important constituent of the regulator's positive market withdrawal supervising which adopts for the guard of finance crisis, is incentive for the bank under the information asymmetrical environment to form the prudential operation. The appropriate closure strategy may reduce the negative effect that the safety net brings, reduce the social welfare losses, and enhance the stable and efficiency of the entire bank industry and the financial system. The legal laws and regulations, the social culture, the economic efficiency and the market discipline may directly or indirectly affects the strategy of the bank closure.From the view of the franchise value, the bank information disclosure behavior, the principal-agent problem, and the systematic risk, this article systematically and thoroughly study the closure strategy of the problem bank: (1) The franchise value may cause the bank to reduce the risk which it undertakes and increase its capital level. Therefore under the social welfare maximization goal, the franchise value is bigger; the bank closure strategy should be looser. (2) Under the situation of the bank's manipulation of the real information, the regulator could design the audit strategy. The ex-ante closure strategy may not consistency with ex-post closure strategy. Because the ex-ante optimal strategy is depending on the social welfare, the ex-post optimal strategy is decided by the bank's operation achievement. (3) The regulator should consider the principal-agent problem in and out of the bank. The bank closure strategy should consider the intervention of the bank manager's managerial rents to limit the incentive, which the shareholder drives to the manager to undertake excessively the risk. On the other hand, the regulator is constituted by the concrete rational economic men, who may delay the problem bank closure from their own prestige, therefore it should give them some incentive and restrain in order to cause them make fair closure decision. (4) The bank closure strategy under the banking system risk is different from the condition under the consideration of an individually representative bank. Looking from the infectious system risk, the bank closure strategy should trade-off between closure and forbearance or rescue. Under the situation, which the bank system was suffered by a macro-economical attack, the regulator should adopt an elastic closure strategy.There are many problem in our country's existing bank closure, such as government intervenes too much etc, and also many difficult question in our bank closure strategy such as the property right system flaw etc. At present, it should carry on transparency forbearance to the state-owned commercial bank. To the middle and small commercial bank, it may adopt a strict closure policy from an ex-ante standpoint and may relax it ex-post. It should deepen finance organizational reform etc. in order to enhance the efficiency of our country's bank closure strategy.