Commercial Banks’ Non-performing Assets In The Debt To Equity Swap Legal Problems

The financial industry is the core of modern economy, with a special high-risk.Bank of Florence from the14th century Batty family of closure to the GreatDepression of the world economy from1929to1933, and then to the Latin Americanfinancial crisis since the1980s, the Southeast Asian financial crisis of the late1990sand2007, the U.S. subprime mortgage crisis evolved into the global financial crisis,these indicate that the case of failure of the banking operations exist in every era.While the cause of the failed banking operations and financial risk of a variety ofreasons, but it boils down most of which are related to the deterioration of assetquality has a direct relationship. So, control and disposal of non-performing assets offinancial institutions, particularly banks, to guard against and defuse the risk offinancial assets, as a gradually expanding trend of the world.Our state-owned commercial banks in the process of economic transition, bear alarge number of policy-related business, the accumulation of a large number ofnon-performing assets, has seriously affected the normal functioning of the bank,threatening the security of the entire financial system. The banks’ non-performingassets and high debt ratio of state-owned enterprises, national economic security,caused by sustained high-speed running a huge risk. In the case of the current pooreconomic situation at home and abroad, the problem of non-performing assets stillhave to face a problem in the process of reform and development of our banking sector, if not effectively solve the problem of non-performing assets, a seriousobstacle to the reform of our commercial banks pace, weakening the competitivenessof our commercial banks, a direct impact on the stable operation of the country’sfinancial security and economic, is not conducive to Chinese rapid economicdevelopment. With the deepening of economic reform and accession to the WTOcommitment to face the full liberalization of the financial markets, placed in front ofour commercial banks not only to develop the market, expand service areas, to seizethe initiative in the new round of competition, more importantly, is to accelerate thetransformation of non-performing assets of the commercial banks’ internal absorption,excluded for the upcoming competition to worry about.This article studies the reasons for the formation of our commercial banksnon-performing assets, combined with Chinese actual situation analysis of ourcommercial banks non-performing assets disposal one of the ways which is the debtto equity. Of financial asset management companies’ debt-equity swap to theimplementation of the current situation and existing problems, this paper carried outthe reasons for in-depth analysis, and on this basis the corresponding improvementmeasures, in order to improve the debt-equity swap in the external environment,coordination of debt the conflict between the conversions with the existing legalframework.