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 expect to maintain this contest until successful, or till I die, or am conquered, or my term expires, or Congress or the country forsakes me.”
—Abraham Lincoln (1809–1865)
“Live within your means, never be in debt, and by husbanding your money you can always lay it out well. But when you get in debt you become a slave. Therefore I say to you never involve yourself in debt, and become no man’s surety. If your friend is in distress, aid him if you have the means to spare. If he fails to be able to return it, it is only so much lost.”
—Andrew Jackson (1767–1845)