The Legal Dilemma And Perfection Of The Practice Of "debt-to-equity Swap" In The Disposal Of Non-performing Assets Of Commercial Banks In China

With the increase of non-performing assets of commercial banks,the debt-to-equity swap,which is one of the important ways to deal with the non-performing assets of commercial banks,has been restarted.However,legal issues such as the legitimacy of debt investment,the litigation of debt-to-equity swap,the withdrawal of shares,and the convergence with other laws have become substantive obstacles to its implementation.From the background of the debt-to-equity swap,the root of the legal dilemma it face is the serious policy.China's debt-to-equity swap is not a legal concept,but a production of policy,so its perfection should begin with marketization,and focus on the construction of legal system.The debt-to-equity swap in 1999 has made great achievements in effectively reducing the risk of non-performing loans of commercial banks,strictly regulating the scope of application,and creating third party implementing agencies,despite the fact that there are excessive administrative intervention,less improvement of the business mechanism and difficulty in the withdrawal of shares.Some useful systems of the debt-to-equity swap in 1999 are still worth learning.Through comprehensive comparison within the debt-to-equity swap in 1999 and the new round of debt-to-equity swap,This paper argues that,as the market economy system matures,the key to smooth the implementation of the debt-to-equity swap is adhere to the principle of marketization of debt-equity swap,especially in the establishment of the legal system,the innovation of equity withdrawal and the convergence with other legal systems.Only in this way,the application of debt-equity swap will be more common.