Study On The Legal Regime Of Restructuring Of Problem Commercial Banks In China

This paper sorts out the laws and regulations involved in the restructuring of Chinese commercial banks,analyzes in depth the bankruptcy and restructuring cases of problematic commercial banks such as Baoshang,Hengfeng and Jinzhou Bank,compiles the legal problems of the current restructuring practice of Chinese commercial banks,and studies the above problems by means of case study method and comparative research method.This paper defines "problem commercial banks" and "problem commercial bank restructuring",and addresses the three most important core problems of problem commercial bank restructuring in China,namely,the incomplete legal framework for the initiation of problem bank restructuring,the lack of abundant tools for problem bank restructuring,and the protection of the rights and interests of problem bank restructuring-related stakeholders.This paper proposes the following recommendations: to clearly define the core elements of the initiation procedure of problem commercial bank restructuring,including the initiation criteria,initiation subjects and initiation time limit;to refine the tools for problem bank restructuring,including purchase and succession,bridge banking,capital management tools and mandatory self-help tools adopted by regulators;to establish a remedy channel and protection of the rights and interests of shareholders,creditors and other interests in commercial bank restructuring.The paper also explores the channels and mechanisms for the protection of the rights and interests of shareholders and creditors in the restructuring of commercial banks.Through this paper,we explore the legal framework,tools and mechanisms for market-based and rule of law-based restructuring of troubled commercial banks in the regulatory process,and contribute to the healthy development of Chinese commercial banks and the maintenance of financial stability.