The Study Of Resolutions In Handling Failing Bank

When one commercial bank goes to problem or become insolvency, especially in financial crisis, the result will be badly serious, the government or the regulatory agencies should make some effective measures to stop the crisis and prevent the disastrous impact on the national or local financial system security. With the economic development and deepening of reform in China, financial risk becomes complicated and diversified. So the effective disposal to the failing bank is urgently wanted. This study is wholly and systematically analyzing the disposals to failing banks.On the basis of related financial theory, this paper firstly introduces the procedures of the resolutions when the regulatory agencies handle the failing banks, analyzes the early signs and early warning system to find failing banks early. Secondly, it explains four common resolutions, analyzes the factors that influences on the choice of resolutions, and summarizes the options in different crisis situations. Finally, under the summaries of American experiences, the paper finds out our problems in handling failing banks, and puts forward concrete suggestions.