Research On The New Found Of Debt-to-equity Swap In Commercial Banks

In recent years,under the new normal of deepening economic restructuring and upgrading in China,the non-performing loan scale of commercial Banks in China has been constantly expanding.Considering the deleveraging of the real economy,the resolution of non-performing assets of Banks and the promotion of economic restructuring,debt-for-equity swap,as the disposal method of non-performing assets,has attracted much attention from the industry.In March 2016,premier Li Keqiang said at the press conference of the fourth session of the 12 th National People's Congress and at the opening ceremony of the 2016 BBS annual conference in boao Asia that "the leverage ratio of enterprises can be gradually reduced through market-oriented debt-for-equity swap".It marks the beginning of a new round of debt-for-equity policy in China.At present,China's capital market is ready to implement market-oriented debt-for-equity swap.Compared with the last round of debt turn period,at present our country has initially established a multi-level capital market,as the main body of market,enterprises(including state-owned enterprises),commercial Banks(including state-owned Banks)and AMC most or listed companies has been co.LTD.,fair trade market rules of banking and debt enterprise more strict constraints.This paper,from the perspective of commercial banks,adopts a combination of theory and case method to analyze and analyze two cases of debt-for-equity swaps of Yunnan Tin Company and Wuhan Iron and Steel Company implemented by China construction bank in a new round of debt-to-equity swaps.Put forward corresponding suggestions for the problems faced by commercial banks in this round of debt-to-equity swaps.The first chapter is the introduction,which introduces the research background and significance of this paper,introduces the domestic and foreign research literature on debt-for-equity swap from the three aspects of the basic theory of debt-for-equity swap,the situation of the new round of debt-for-equity swap and the implementation of debt-for-equity swap by commercial Banks,and expounds the research method and research route of this paper.Chapter two is about the practical experience of debt-for-equity swap and the related theoretical overview.This paper introduces the practical experience of domestic foreign debt equity swap,the specific situation of the new round of debt equity swap in China and the comparison with the last round of debt equity swap,at the same time introduces the specific situation of commercial Banks in the new round of debt equity swap and expounds the relevant theories of debt equity swap.Chapter three,case analysis.This chapter makes an in-depth analysis of the two cases of Yunnan Tin Company and Wuhan Iron and Steel Company,first introduces the basic situation of the cases,then analyzes the similarities and differences of the two cases of debt-for-equity swap,and evaluates the effect of debt-for-equity swap.The fourth chapter summarizes the main implementation modes of commercial Banks in the new round of debt-equity swap and puts forward five Suggestions: to construct risk prevention system,to flexibly select the type of debt-equity swap,to strengthen post-debt-equity swap management,to carry out third-party evaluation and to introduce professional talents.Chapter five is the conclusion part.On the basis of summarizing the results of case analysis,it points out that the current round of market-oriented debt-for-equity swap is an important measure to reduce leverage and prevent risks in China's macro-economy.This round of debt-equity swap has fully played the role of the market in allocating resources.If the corresponding risks can be well controlled,this round of market-oriented debt-equity swap can alleviate the bad debt risk of commercial Banks to some extent,relieve the debt pressure of enterprises and optimize the asset-liability structure of enterprises.