Research On The Bad Debts Between The State-owned Enterprises And Commercial Banks

The bad debts between the state-owned enterprises and commercial banks are becoming more and more serious in China in recent years. It has become a huge obstacle to the reform and development of banks, enterprises and governments. It is also threatening the stabilization of the whole financial system. Not being able to be solved in the long run, it may become a latent hazard to the social stabilization and financial order. The Southeast Asian Financial Crisis in 1997 is an alarm bell to us. It is the most urgent situation for us to handle the bad debts between the state-owned enterprises and commercial banks. This paper emphatically discusses how we solve the bad debts between the state-owned enterprises and commercial banks.This paper discusses the status and harms of the bad debts between the state-owned enterprises and commercial banks, analyses the reasons of the bad debts, at the same time this paper summarizes the basic experiences and lessons from foreign countries and its enlightenment to our country. Finally, this paper puts forward many solutions to solve the bad debts, and emphatically discusses one of the solutionswap of Debt-Share.The true goal of this paper is to give some suggestions on the solving of the bad debts between the state-owned enterprises and commercial banks in order to strengthen the economic base of banks and enterprises, promote the stable, continual, efficient growth of national economy and make our country face the challenge of WTO.