A Comparative Study On The Subordinated Debt Market Of Commercial Banks In China And The US

According to the request of "The New Basel Capital Accord" , in 2004, China Banking Regulatory Commission (CBRC) issued "The Measures on the Sufficient Rate of Capital of Commercial Banks", which claimed that the sufficient rate of capital should be more than 8% and that of core capital should be no less than 4%. According to the measure, the deadline for conforming to the request was January 1^st,2007. In recent two years, many banks tried to solve the problem of low sufficient rate of capital by issuing subordinated debt. The subordinated debt market began to boom as a convenient way to increase capital. It not only plays an important role in financing but also has a great effect on market regulation based on overseas experience. What's more, commercial banks can also settle the problem concerning about matching time limit between assets and debts. Now there are rare studies on subordinated debt market in our country and a clear description of the development of it is not available. So it has a great significance to do some research on this topic.This thesis starts with the definition of subordinated debt and then gives an introduction of the characteristics of it and some relative theories about subordinated debt market. Then the thesis introduces American experience on development of subordinated debt market. In the next chapter, according to domestic issuing market, the author gives a detailed analysis on the current situation of sufficient debt market in China with concrete examples guided by related theories. At last, the author compares the subordinated debt market of commercial banks in China with that in America and puts forward some useful strategies and suggestions to build up domestic subordinated debt market from the point view of four interest-related parts as government, bank, investors and evaluation institution.