Study Of The Creditor Committee System Of Financial Institutions

In recent years,China’s economy has been affected by multiple international and domestic factors,and the lack of economic development drivers has led many enterprises to fall into debt crisis,and failure to take effective measures will lead to the continued fermentation and contagion of local financial risks.In 2016,the CBRC,taking into account the current situation,its own responsibilities and objectives,strengthened top-level design and system optimization in the effective prevention and control of financial risks,and deployed the establishment of a financial institutions Creditors’ committee working mechanism to effectively rectify irregularities in financial development and avoid systemic financial risks.The regulator advocates the establishment of a financial debt committee with the aim of promoting unified action and forming a synergy among creditors of financial institutions,so as to avoid creditors of financial institutions working individually,making withdrawals and cutting off loans and accelerating the death of enterprises.For enterprises with restructuring value,a unified restructuring plan can be negotiated and implemented through the Financial Debt Committee for risk resolution.For those that have no hope of recovery and need to enter bankruptcy restructuring or liquidation procedures,the foundation can be consolidated through the preliminary work of the Financial Institutions Debt Committee,and the work of articulating with judicial procedures can be done.Since its operation,the system has been based on the 2016 CBRC Circular No.1196,the 2017 Circular No.802 and the 2020 CBRC Circular No.57 issued by the CBRC,but it has been lacking the support of the higher law,resulting in problems such as the lack of clarity of the legal status of the FSC,the lack of enthusiasm of creditors of financial institutions to participate,the lack of effectiveness of the FSC’s resolutions and their subsequent implementation,as well as the inability to effectively interface the system with the debt committee system in bankruptcy proceedings.This article takes the creditor committee system of financial institutions as the object of study and adopts the methods of literature analysis,case study and comparative analysis to analyze the difficulties faced by the creditor committee system of financial institutions in China.On this basis,by analyzing the experience of the debt committee system of financial institutions in China and the experience of the operation of debt committees led by financial institutions under the debt committee system in foreign countries,and taking into account the actual situation in China,this paper proposes that the creditors’ committee system of financial institutions can be improved in terms of granting civil subject qualifications to the debt committee of financial institutions,protecting the right to information of financial creditors,strengthening the responsibility and accountability mechanism of the main body and constructing a pre-restructuring system.The system should be improved in the following aspects.