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Have you taken advantage of sub-debt option?

August 16, 2016

The use of debt financing to provide capital expanded greatly on Dec. 11, 2014 for a large group of financial institution holding companies when both chambers of Congress passed legislation that increased the total asset size for holding companies to qualify for exemptions to capital guidelines under the Small Bank Holding Company Policy Statement.

While debt financing is available to bank holding companies of any size, BHCs with less than $1.0 billion in consolidated assets have more flexibility when it comes to structuring the terms of any debt financing, as we discuss in this article.

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