Research On The Problems Of Subordinated Debt Issued By Commercial Banks Of China

As a financial tool of the commercial bank to run in to debt forwardly, subordinated debt (SND) has received abroad recognition and favor in the international banking for the recent years, and it has played an important role in commercial banks' stable running and continual development, especially in the reestablishment of banking systems after the finance crisis in some countries. SND is able to cushion the loss of commercial banks for the liquidation of its corpus and interest is after the common debt but before the common stock. So it has some characteristic of capital. And the Basel Accord recognises some kinds of SND, meeting with certain requirements as the affiliated capital of banks. With the reinforcement of supervising of our commercial banks'capital, the minimum line of capital adequency has gradually become the limitation of banks' rapid expansion and banks are suffering from the lack of capital as well as the absence of supplying channels. So allowing banks to issue SND opens a new way for banks to acquire capital continually and conveniently.This dissertion focuses on the study of SND, a relatively new financial tool in our country. This dissertion starts with the depiction of capital's concept, then enduce the conception of SND which is one kind of the tie 2 capital. This part includes the definition, theoretic fuctions, classification and its potential risk of SND. Considering the short history of the issue of SND in our country and the necessity of learing from the experiences of foreign commercial banks, a detail introduction of the issuing situation of SND and the related rules in different foreign countries is given in this part. The following part is the emphasis of this dissertation, which presents the comprehensive study of issuing situation in our commercial banks. The issuing modes of SND as well as the elements in designing the rules, including the issuing scale, maturity, interest-pay way and option item were investigated. The contrast method and cases analysis method were used in analyzing the aim and principle of the designed issuing rules of SND. The analysis results show that all the state-own...