The Impact Of Market-oriented Debt-to-Equity Swap On The Performance Of Commercial Banks Under The Background Of Deleverage

The high level of leverage in our country has been a problem that puzzles us for many years.It has become more serious in recent years.In recent years,the domestic economy has been in a recession,and the leverage rate has been greatly increased.The high leverage ratio has led to a series of problems for enterprises,and the commercial banks that lend loans to them are also the first to bear the brunt.In the1990 s,the government has vigorously implemented debt-to-equity swap for a period of time.Many commercial banks have stripped a large number of non-performing assets through the policy of debt-to-equity swap,so that they can be lightly loaded and their performance level has been improved to a certain extent.Nearly 20 years later,the second round of debt-to-equity swap,which officially opened in October2015,has many differences from the first round of debt-to-equity swap,and faces many new risks.In such a new situation,the impact of debt-to-equity swap on the performance of commercial banks is the issue discussed in this paper.In order to exclude the influence of other factors on the study and improve the stability of the results,we select foreign banks as the control group,large joint-stock commercial banks as the treatment group,and choose liquidity ratio and capital adequacy ratio as control variables,using double difference model for multiple linear regression.Through empirical test,we find that debt-to-equity swap policy has a negative impact on the return on net assets of commercial banks,a positive impact on the deposit-to-loan ratio,and no significant impact on the non-performing loan rate.This shows that,after debt-to-equity swap,the return on net assets of commercial banks will decline.Under the condition that assets remain unchanged,the policy of debt-to-equity swap will reduce the profits of commercial banks,increase the equity of commercial banks,increase the owner’s equity,that is,the denominator’s equity,and the return on net assets will inevitably decrease.After debt-to-equity swap,the deposit-to-loan ratio of commercial banks will rise,and a large number of credit Right increases the ratio of deposit to loan,but the effect of debt-to-equity swap on the non-performing loan rate of commercial banks is not significant,and even has an upward trend.In view of the above problems,this paper puts forward a series ofsuggestions,such as improving the withdrawal mechanism and expanding the scope of loans,so that commercial banks can improve their performance level after debt-to-equity swap and achieve the unity of the three.