The write-down of subordinated debt means that when the trigger event occurs, the issuer has the right to irrevocably write down the principal of the current bonds and other issued Tier 1 capital instruments in full from the day after the trigger event, without obtaining the consent of the bondholders, and any unpaid accumulated interest payable will no longer be paid. When the principal of a bond is written down, the bond is permanently cancelled and will not be restored under any circumstances.

Subordinated debt/subordinated bebt refers to the long-term debt of a commercial bank with a fixed term of not less than 5 years (including 5 years). Unless the bank closes down or liquidates, it will not be used to make up for the daily operating losses of the bank. The creditor's rights of this debt rank behind deposits and other liabilities. Subordinated debt has become an important source of secondary capital for banks in most countries, which plays an important role in improving liquidity, reducing financing costs and strengthening market binding.