Subordinated Term Debt
Subordinated debt is debt that ranks lower than ordinary depositors of the bank. Only those with a minimum original term to maturity of five years can be included in the calculation of this form of capital; they must be subject to proper amortization arrangements.
Read more about this topic: Tier 2 Capital
Famous quotes containing the words subordinated, term and/or debt:
“If work and leisure are soon to be subordinated to this one utopian principle—absolute busyness—then utopia and melancholy will come to coincide: an age without conflict will dawn, perpetually busy—and without consciousness.”
—Günther Grass (b. 1927)
“I shall not seek and I will not accept, the nomination of my party for another term as your President.”
—Lyndon Baines Johnson (1908–1973)
“The debt was the most sacred obligation incurred during the war. It was by no means the largest in amount. We do not haggle with those who lent us money. We should not with those who gave health and blood and life. If doors are opened to fraud, contrive to close them. But don’t deny the obligation, or scold at its performance.”
—Rutherford Birchard Hayes (1822–1893)