The Self-rescue For Commercial Bank Crisis

As a kind of special enterprise by managing debts to gain profits, the commercial banks were born with risks.The direct result of the bank risks is the explosion of bank crisis.The bankruptcy of a bank will not only harm the interests of shareholders and the employees, the most important is that this might harm the general interests of creditors, and the social security will be threatened if the depositors' money is not safe. Moreover, the single bank crisis can infect other healthy banks, even the whole banking industry, causing banking crisis.So,for the security and stability of the whole financial system and the development of the entire national economy, banks which are facing a difficult situation have obligation to take measures to rescue themselves.Although the bank crisis is horrible, the most important thing is how to deal with it. This thesis is about how to deal with the crisis situation. When a bank runs into crisis, the Commercial bank must firstly carry on any measure it can do to survive, at the same time, seek the external assistance from other banks,the Central Bank, and the government.This thesis aims to establish a standardized, comprehensive, forward-looking self-rescue system of commercial bank crisis, which will improve commercial banks'crisis management ability.This thesis is composed of three parts. The first part is chapter 2, the literature review.The crisis management theory and the commercial bank self-rescue theory are briefly summarized in this part. The second part is the core part of this thesis, including the third chapter and fourth chapter, elaborating the short-term emergency measures and long-term measures to deal with the crisis.What the third part discusses is to adopt a series of instauration measures after the commercial bank has got through a crisis.The main contents and viewpoints of this thesis: Chapter 1 is the introduction of the whole thesis, introduces the background of the research, the logic structure, the main contents, and the innovation and shortage of the thesis.Chapter 2 is the literature foundation of the whole thesis.First,elaborating the theory of crisis management, including the idea of social crisis management theory, corporate crisis management theory, commercial bank crisis management theory. And then summarize the commercial bank self-rescue measures.At last, the author presents he's own points about the self-rescue of commercial bank.Chapter 3 discusses the short-term measures which commercial bank can adopt in the crisis.The short-term measures include starting the urgent plan, realizing the assets, getting loans back, borrowing from other banks and the central bank, using of reserve requirements,ask the government to inject capital, and so on.Chapter 4 discusses the long-term measures.The long-term measures include taking deposits, publishing bank debenture,carrying out the debt restructuring, and reducing operating cost.Chapter 5 discusses the restoration management when the bank is rescued successfully. Commercial banks need to reshape the image of commercial banks, while sum up experiences,and lessons of the crisis, enable commercial banks'asset quality, internal management, etc. to be improved. By selling non-performing assets, entrusted assets management companies or investment banks dispose of bad assets, and asset securitization, etc.,commercial banks can optimize assets quality. By issuing new shares or share placements to complement the capital, set aside enough bad debt reserves of commercial banks increased ability to resist risks.The author researches systematically on the long and short term measures and the restoration management measures which could be taken by the commercial bank after the crisis. The principle contributions of the thesis are these:Firstly, the standing point is at the commercial bank's side. By bringing the methods of business enterprise and social affairs crisis management into commercial banks crisis management, author establishes the self-rescue mechanism which should be'start up after the commercial bank crisis has taken place.Secondly, this article is rather forward-looking, because it raises specific measures according to the latest domestic and international financial market circumstance and the latest law.As the author's theoretical knowledge and practical experience is limited, and some data is unavailable, thus there are some insufficiencies unavoidably in the commercial bank crisis self-rescue research. I will constantly improve myself in the future study.