Compared with developed countries,there are still many deficiencies in Chinese subordinated debt system and there are many obstacles in linking up with the current legal system.

Risk analysis of commercial banks issuing the subordinated bonds of our country;

According to Basle Agreement and much of practice, civil banks strengthen the application of subordinated bonds in capital management.

Senior debt and incentive effects of junior debt;

The investors of commercial banks subordinated debt have the strongest endogenetic inspirit to eliminate the shareholders hazard risk because they are lack of effective channel to shift away such unavoidable risk.

Issuing Subordinated Debt is one way for the commercial banks in our country to get enough capital.

Many foreign academicians have done much work on the market discipline of subordinated debt of commercial banks from theoritical and empirical analysis.