Study Of Commercial Banks Subordinated Debt Financing

From December 2003 onwards, the CBRC and PBC has successively promulgated the "regular on the sub debt will be credited subsidiary capital notification", "commercial banks capital adequacy rate management approach" and the " commercial banks to issue sub debt management approach". Then, subordinated debt begins to be replenished in China. Because of the huge market demand, its prospects are bright. However, there are many of problems in practicing. Therefore study of commercial banks subordinated debt financing has great practical significance.This paper makes an in-death analyses on those problems. First, the purpose is single when China's commercial banks to issue subordinated debt, only as a supplement to the capital to facilitate channels and neglected subordinated debt in improving risk management and liability structure of the banking functions. Second, the problem of mutual holding serious in the issue of China's commercial banks financing subordinated debt, mainly caused system risk, the risk of moral hazard and liquidity risks. Third , the interest rates is low. Forth, the legal issues. Fifth, the credit rating. At the same time, the causes of these problems is analyst.On the basis of analysis of these issues and proposed ,the development of China's commercial banks subordinated debt is respond. First, to deepen the banking reform, and to improve the management level of commercial banks. Second, to expand the circulation platform of subordinated debt. Second, through the operation of market to price subordinated debt. Forth, trust- subordinated debt structure, or contract-structure, and contingent liability type can solve our legal issues as a way .Fifth , to be strict with subordinated debt credit rating system.This research have a view to address the realities of commercial banks subordinated debt financing issues point contribution. At the same time, the hope that, with China's financial and banking reforms to improve the environment in-depth, subordinated debt reflect exert superiority better.