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Explanation: According to BIS rules, subordinated liabilities are recognised as an equity component of the so-called "Tier II” supplementary capital, subject to a maximum inclusion threshold of 50 per cent of core capital.
Ralf Lemster Germany Local time: 21:03 Native speaker of: German PRO pts in pair: 2684
Explanation: The loans are charged to the amount of investment the individual has in the business. Should they not be repaid, his proportionate share of ownership will presumably decrease accordingly. A common, much abused corporate practice in the US. I can tell, the Germans are quick on the uptake (but that's British, I guess).
gangels Local time: 13:03 Native speaker of: English, German PRO pts in pair: 5465