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Subordinated Debt and Banking Regulation: An Overview

In: Banking and Beyond

Author

Listed:
  • Giulio Velliscig

    (University of Udine)

  • Josanco Floreani

    (University of Udine)

  • Maurizio Polato

    (University of Udine)

Abstract

The recent literature has started focusing on the evolving role of subordinated debt and its investors within the EU resolution framework. The market monitoring function employed by its investors and its crucial role in complying with the minimum amount of own funds and eligible liabilities (MREL) make the subordinated debt an interesting case of study under the Bank Recovery and Resolution Directive (BRRD). This chapter provides an overview of the literature about subordinated debt and discusses its evolution within banking regulation with a focus on the BRRD. We deepen the streams of literature able to ground both theoretically and empirically future research on the role of subordinated bondholders under recovery and resolution rules.

Suggested Citation

  • Giulio Velliscig & Josanco Floreani & Maurizio Polato, 2020. "Subordinated Debt and Banking Regulation: An Overview," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Caterina Cruciani & Gloria Gardenal & Elisa Cavezzali (ed.), Banking and Beyond, chapter 0, pages 75-104, Palgrave Macmillan.
  • Handle: RePEc:pal:pmschp:978-3-030-45752-5_5
    DOI: 10.1007/978-3-030-45752-5_5
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