Research On The Protection Of Creditor's Rights Of Commercial Bank Debt To Equity Swap

In recent years,the non-performing loan ratio of China's commercial banksis high,the disposal of non-performing loans reducing financial risk has become an important task for the government and banks.In 2016 the State Council issued “The Proposal on Actively and Steadily Reduce Leverage” and “Guidance on the Market-oriented bank debt into equity”.he country's The first project of market-oriented bank debt into equity in our country successful landing,Rongsheng Heavy Industries became the first directly debt into equity company in A share market.After this,the debt to equity swap in China has continued to carry out,less than half a year has nearly 40 debt into equity project,involving huge amount.The introduction of the debt to equity policy is the objective demand of the reform of the bank and enterprise in our country,and it is one of the important ways of the debt restructuring of the modern enterprise.However,if the project is a tool rather than the results,the use of both needs appropriate conditions,but also need relevant system arrangement.The implementation of debt to equity in the participation for many enterprises operating difficulties,debts,serious business losses,commercial banks as the largest creditor of the enterprise,in the realization of creditor's rights difficult circumstances,or forced to realize creditor's rights is not conducive to the overall economic value of protection,to balance the commercial bank creditor's rights,the debtor and the interests of society and the choice of debt interest.However,the implementation of the debt to equity swap does not mean that the risk of non-performing assets is too high to be resolved,debt to equity swap is only temporarily beautify the bank's balance sheet.Blind debt to equity swap will only delay the occurrence of bad debts,and can not really solve the return of funds,which will lead to the obstruction of financial functions,hinder the financing of funds and the allocation of resources.Therefore,whether the creditor's rights of commercial banks can be protected depends on the subsequent operation of debt to equity enterprises.From a legal perspective,the creditor's rights and equity compared to be bound by investors to be tougher,equity investment is facing greater risk.The operating risk of commercial banks related to the financial risk system of the whole country,the debt to equity swap policy landing on the occasion,in debt in the process of risk control of commercial banks,commercial bank guarantee creditor debt equity swap is the proper meaning of system design.Debt to equity swap is a tool rather than a result,no matter with the development of debt to equity at any stage,the evolution of the form of commercial claims,in the final analysis,is to achieve the maximum debt service bank claims.So from the original form of rights,discussed in this article the commercial bank creditor's rights protection not only refers to the protection of creditor's rights debt before the bank,also refers to the debt into equity to equity exit debt for equity in the whole process,to achieve the protection of bank debt and debt service of creditor's rights and creditor's rights transformation equity.To effectively protect the commercial bank creditor's rights,prevent the debt caused by new financial risks,can reduce the risk of banks,the implementation of institutions through debt preferred shares,to prevent systemic financial risks breeding;formulate reasonable pricing mechanism,the debt market more fair and orderly;establish the creditor debtor two-way restriction mechanism,supervision each bank implemented in debt,and jointly promote the restructuring of enterprises,to achieve profitability;smooth debt exit channels,the introduction of more social capital,play the power of medium and small investors,improve the state-owned enterprises property right system.