A Mathematical Analysis of the Influence of Subordinated Debt on the Stakeholders of Commercial Banks——Based on the Perspective of Market Discipline
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Abstract Subordinated debt and deposits have the effect of market discipline on commercial banks and the market discipline of deposit is not changed by the issue of subordinated debt. However, the issue of subordinated debt compensates for the risks of deposits to some extent. The shareholders of commercial banks do not play the role of the market discipline and are not affected by the issue of subordinated debt. So the market discipline function of subordinated debt should be exerted and the timing of the issue of subordinated debt should be paid attention to.
DI Guang-Yu,ZHANG Yong-Chao,WANG Jin-Jie. A Mathematical Analysis of the Influence of Subordinated Debt on the Stakeholders of Commercial Banks——Based on the Perspective of Market Discipline. Economic Survey, 2011, 28(5): 0139.
2011, Vol. 28 
