Study on the Risk of Commercial Banks by the Debt-for-Equity Swap
International Journal of Business and Economics Research
Volume 6, Issue 4, August 2017, Pages: 58-60
Received: Jul. 19, 2017;
Published: Jul. 19, 2017
Views 2122 Downloads 131
Xiao Wang, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Xin-ming Chen, The School of Government, Central University of Finance and Economics, Beijing, P. R. China
De-yun Zhen, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Ke Gao, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Follow on us
With China’s economy changing into the new normal, the business environment faced by commercial banks has undergone major changes. The real economy is facing many difficulties. The rising rate of non-performing loans has become a business problem which commercial banks have to face. Therefore, in this kind of condition, The debt-for-equity swap seems to be a good recipe for commercial banks to regain their confidence in management. However, the author thinks that the debt-for-equity swap will bring many risks to commercial banks: Financial risk, Liquidity risk, Cash Payment risk and Moral risk. Therefore, if the debt-for-equity swap will be carried out massively, it is not necessarily a good thing for the commercial Banks. So we need to take a cold look at the debt-for-equity swap.
Debt-for-Equity Swap, Commercial Banks, Financial Risk, Liquidity Risk, Cash Payment Risk, Moral Risk
To cite this article
Study on the Risk of Commercial Banks by the Debt-for-Equity Swap, International Journal of Business and Economics Research.
Vol. 6, No. 4,
2017, pp. 58-60.
Zhou xiao chuan. Several issues concerning debt to equity swap [J]. Comparison of economic and social systems, 1999(11): 1-9.
Li Yang. China national balance sheet 2015: Leverage adjustment and risk management [M]. Chinese Social Science Press, 2015.
Du Jin. Debt to equity swap call for renewed: Comb AMC debt to equity swap business [N]. Financial Times, 2016-03-28.
Zhang Xiao Mei. Experience of foreign financial Asset Management Co and its reference significance to China [J]. Accounting in Shanghai, 2001(9): 14-16.
Wu You Chang, Zhao Xiao. Debt equity swap: Theory and policy analysis based on corporate governance structure [J]. Economic research, 2000(2): 26-33.
Lou Fei Peng. The historical experience and suggestions for the implementation of bad loans and debt to equity swap in commercial banks [J]. Southwest finance, 2016(5).
Li Li. How can commercial banks participate in making conversion. [J]. Chinese Rural Finance, 2016(5).
Liu Lei. Research on the legal issues of debt to equity swap in the disposal of non-performing assets of banks [J]. Journal of Jilin TV and Radio University, 2016(5).
Chen Li Wen, Tong Zi Juan, Ye Li. New financing model for small and medium sized scientific and technological enterprises: Theoretical analysis based on portfolio framework [J]. Financial Development Research, 2016(4).
Wu Lin Chang. Reconsideration of bankruptcy isolation in the asset securitization trust model [J]. Finance and economy, 2016(4).
Zhang Kun, Ou Ming Gang. Evaluation report on competitiveness of city commercial banks in 2015: Urban commercial bank transformation and development hot spot under new normal [J]. Banker, 2015(10).
Zhou Wan Fu. Rational view and implementation of debt equity swap [J]. China Finance. 2016(8).