Amplify Bankruptcy System Of Enterprise Protect Rights And Interests Of Commercial Bank

Bankruptcy is one kind of act occurred under market economy condition. With the development of social commodity economy, the enterprises and other economic organizations which participate in the process of social economy functioning certainly will undergo the test of market economy. Survival of the fittest is the nature rule, bankruptcy is also one kind of implement of resource allocation adjusted by market economy. It requires that the enterprise must conduct production according to the demand of market, and realize the value of its product through the exchange of market, thus to allocate the social resource reasonably, benefit the development of society as -well as ensure the normal operating of market economy mechanism. Bankruptcy is one act that will protect the benefit of creditor In a sense, the implementation of bankruptcy to those enterprises which could not pay off mature debts arid bard to carry on the management is the protection to the benefit of creditor, for it stop the continuous flow off of the assets and reduce the losses of creditor to the minimum degree. The direct victim during the enterprise bankruptcy is the creditor of enterprise, and that bank is usually the maximal creditor of enterprise who will suffer the losses of principal and interest of loan. Therefore the bankruptcy act must be standardized according to law in order to prevent the enterprise to dodge debts by using bankruptcy as a pretext and protect the legal rights and interests of creditor. The promulgation and implementation of China Bankruptcy Law of Enterprise has broken the prohibition that the state-owned enterprise could not go bankrupt, it accelerates the establishment of enterprise competition mechanism of survival of the fittest, and propel the development of market economy. However, the actual enterprise bankruptcy system has shown some defects and questions. Some enterprises use the name of bankruptcy to dodge debts, it has severely infringed the benefit of creditor, especially the benefit of the maximal creditor ?bank, it has led the abundant losses of credit assets of bank and cause the turbulence of credit relation. To solve these questions, the enterprise bankruptcy system should be improved and the bankruptcy law should be perfected including social guarantee system, property right transfer system and financial laws and regulations, etc. Bank should strengthen the risk management, improve credit management, amplify risk precaution mechanism of loan, strengtnen supervision of risk capital, establish new- style relation between bank and enterprise. The policy of different treatment shall be adopted to the enterprise which is on the brink of bankruptcy. Bank should also interpose the strypped-down work of enterprise and eliminate badness creditor?s tights, thus to protect the legal tights and interests of bank.