Debt-to-equity Swap Scheme Design Of China Minsheng Bank

China is now in the economic development stage of cutting overcapacity,adjusting structure and deleveraging.The increasing non-performing loan of the entire banking industry has imposed a negative impact on the turnover of capital and sustainable operation.As a representative joint-stock bank,CMBC(China Minsheng Bank)should respond to the call of country actively,defuse non-performing loans through debt-to-equity swap,lower the non-performing loan ratio,and guarantee its stable and continuous operation.How to launch the debt-to-equity swap actively and steadily and formulate a swap plan suitable for CMBC based on the previous theory and practice of debt-to-equity swap will be of certain realistic significance.Furthermore,it will also be referential for commercial banks in the way of designing debt-to-equity swap plans and accelerating the implementation.By taking CMBC as the research target,this paper puts forward the implementation plan of debt-to-equity swap for CMBC with document research,investigation and data modelling,based on the analysis of CMBC loan business conditions,structure of non-performing loans and disposing methods.Firstly,related theories of debt-to-equity swap are introduced,including the features,institutional structure,operating mechanism and game framework of debt-to-equity swap,to make theoretical preparations for the proposal of debt-to-equity swap plan.Secondly,loan business conditions of CMBC are analyzed,and causes for non-performing loans are summarized.Besides,advantages and disadvantages of various methods of treating non-performing assets are compared with contrastive analysis,and the inevitability and feasibility of implementing debt-to-equity swap in CMBC is proposed.Thirdly,goals,principles,overall frame structure,contents and specific steps of debt-to-equity swap are confirmed for CMBC.Finally,safeguard measures are put forward to ensure that debt-to-equity swap can be implemented much more steadily and effectively in CMBC,for instance,formulating sound debt-to-equity swap enterprise selection mechanism,reinforcing thestock equity management,designing protective provisions,guiding the transformation of all stakeholders actively,etc.