Abstract: Subordinated bond has a lot of advantages over other instruments.The advantages generally derive from their junior status,relatively long maturity,etc.As a debt instrument,subordinated bond not only provides banking organizations with internal incentives to refrain from augmenting their risk,but also imposes additionnal(incentives) through participants and supervisors.Of course,there are a number of deficiencies about subordinated bond,such as bailouting of supervision,reducing the flexibility of supervisors and many force the supervision’s hand.