Legal Problems Study On Commercial Bank's Distressed Debt In The Debt To Equity Swap Under The New Normal

Under the downward new normal economic,commercial Banks' distressed debt becomes higher and higher,which has serious impacts on healthy growth of the banking sector,even on all the financial industry.With the lessons we learned from previous economic crisis caused by Banks crisis,the government must pay more attention to this problem.With the requirement to lower leverage,debt-to-equity swap is asked to stand the time stage again.The momentum of the new round of the debt-to-equity swap is fast.Since the State Council explicitly put forward the market-oriented of debt convertible way to lower corporate leverage for the first time in March 2016,it has formally announced two opinions only during a few months.This means the debt-to-equity swap has restarted formally since 1990 s.According to the guidance from the two opinions,the new round of debt-to-equity swap gives direction of its specific market-oriented operation method,basing on marketable and legally principle.This shows a distinct contrast from the debt-to-equity swap in 1990 s,which blew away the pessimistic speculation from the public prior to the policy.But the guidance of policy couldn't make us confident enough to accept debt to equity,we still need to coordinate and improve the operation,including implementation methods,pricing mechanism,exit mechanism,corporate governance mechanism,etc.In addition,the improvement of the legislation level shouldn't be ignored.To sum up,the legal aspects of debt-to-equity swap should be solved and improved.With the typical cases of the restarting of the new round of debt,I try to summarize the characteristics of the new round of debts into shares,and analyze the debt-to-equity swap's connotation and legal basis.Then I review the debt-to-equity swap at 1990 s,analyzing the reasons about it's law problems at that time,to give the direction for the new debt-to-equity swap.The essay also describe the foreign mature experiences as reference.Finally giving the existence of its law problems,the essay finds the relevant actionable legal solutions.