Research On The Impact Of Market-based Debt-to-equity Conversion On Disposal Of Non-performing Assets Of Commercial Banks In China

In recent years,as the uncertainty of the external environment has increased,China's economic downward pressure has increased,corporate debts have been high,profitability and solvency have declined,which not only restricts the development of China's real economy,but also has an impact on the quality of China's commercial banks' assets.Negative impact.Market-oriented debt-to-equity swaps are regarded as an effective way to solve the problems of commercial banks' non-performing assets and high corporate debts at the same time.The market-based debt-to-equity swaps have landed in state-owned enterprises that have difficulty operating in China.Ability,on the other hand,also has a positive significance for the treatment and purification of commercial banks' non-performing assets.This article is mainly based on the background of market-oriented debt-to-equity swaps,and through case analysis,studies the background of debt-to-equity swap companies,reorganization plans,and analyzes the financial performance of enterprises before and after debt-to-equity swaps.Assess the risk of disposing of non-performing assets in the form of shares,and give relevant recommendations.According to the research content,this paper first summarizes and summarizes the domestic and foreign relevant literature on market-oriented debt-to-equity swaps and commercial banks' non-performing assets,and determines the research content and research ideas of this paper on the basis of previous studies.Secondly,to elaborate the theoretical basis of this article,at the same time analyze the current situation of China's market-oriented debt-to-equity swaps and commercial banks' non-performing assets,and find out the problems of China's commercial banks' non-performing asset market-based debt-to-equity swaps.The financial performance analysis of the three debt-to-equity swap companies of Aviation Oil Transportation,Changhang Phoenix and Nanjing Iron and Steel Co.,Ltd.found that after the debt-to-equity swap program was implemented,the profitability and debt ratio of the company improved significantly,indicating that the implementation of debt-to-equity swaps will affect the financial status of the company.There has been a great improvement,which has allowed commercial banks to alleviate the risk of bad debts and cash flow pressure to a certain extent,and it is also more beneficial for commercial banks to revitalize their non-performing assets.Finally,from the perspective of a commercial bank,a debt-to-equity swap company's risk analysis on debt-to-equity swaps was conducted,and the impact of market-based debt-to-equity swaps on the disposal of non-performing assets of commercial banks was analyzed in conjunction with the debt repayment status of research cases.The economic situation gives suggestions on how to deal with debt-to-equity swaps at the national,commercial bank and enterprise levels.After an empirical analysis of the case,it was found that the implementation of market-oriented debt-to-equity swaps can reduce the scale of debt for enterprises,improve the solvency of enterprises in the short term,improve financial risks to a certain extent,and increase profitability accordingly.For commercial banks,although market-oriented debt-to-equity swaps will face certain risks,on the whole,commercial banks can not only directly remove non-performing assets from the table,but also dispose of non-performing assets,Reducing the rate of non-performing loans is of great significance and can further stabilize the development of commercial banks.