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:
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—Günther Grass (b. 1927)
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“Let every man, every corporation, and especially let every village, town, and city, every county and State, get out of debt and keep out of debt. It is the debtor that is ruined by hard times.”
—Rutherford Birchard Hayes (1822–1893)