Research On The Legal System Of Bail-in Debt Of China’s Commercial Banks

Commercial banks,as the main body of the modern financial system,its operational risks and credit risks are easy to bring about a large range of negative externalities,and even would further spread to systematic financial risks.Therefore,ensuring the effectiveness and steadiness of the bail-in debt system,which absorbs loss for the commercial banks,has become the key for stabilizing the Chinese commercial banking system.This thesis focuses on the typical case of first triggering bail-in debt system in China,which was Baoshang Bank implementing a full write-down of its tier 2 capital bonds with the principal of 6.5billion RMB according to the issuance contract in 2020.After studying the relevant books and literature,this thesis summarizes and sorts out the basic theory of the bail-in debt system of commercial banks.On this basis,this thesis introduces the specific content of the bail-in debt system in China and deeply analyzes the problems of it.By referencing the design and implementation experience from the western countries,this thesis analyzes the practical problems in China and makes relevant suggestions for its improvement.Perfect bail-in debt system in our country can make it better play the key role of loss absorbing function,transit the financial crisis for the commercial banks,and protect the interest of depositors,creditors and other financial participants.It guarantees the stability and security of our country’s commercial banking system.