Bank's Non-Perforning Assets Restructure And The Debt To Equity Swap(DES)

There are two big symptoms in the same time which are state-owed commercial bank high rate of non-performing assets and state-owed enterprise high liability-asset ratio in our country economy. Whether they are solved influences our country economy long-term development. Based on foreign bank's non-performing assets restructure experience , the paper bring out a new kind of institution design which is the debt-equity swap(DES) in order to solve assets and liabilities between bank and enterprise. Major viewpoints are: (1) conducting the reason of the bank's non-performing assets to bank's credit loaning capital fiscal in the transition economy period;(2) concentrating the way of foreign bank's non-performing assets disposal; (3)evaluating the measure of our country bank's non-performing assets disposal to bring out DES;(4)citing the theory of enterprise governance structure to DES and describing the theory foundation of DBS lies in the improvement of enterprise governance structure. ;(5)based on the reality analysis, describing the operating mechanism of DES and the evaluation of the consequence;(6)in the light of the relation between DES and capital market, pointing out the choice of our country capital market improvement;(7)bringing out the means to the exit mechanism of DES ;(8)analyzing the moral hazard of the operation of DES to probe the measure to prevent from.