For banks, a key measure of solvency is the tier 1 capital ratio, which is calculated as the ratio of equity capital and assets.As a result of the recent crisis, there are many people advocating convertible debt; debt that converts to equity when necessary (for example, when the tier 1 ratio drops below the regulatory minimum).Do you think convertible debt plays a role when you are trying to take over a bank? If so, why and how?

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The Answer of For banks, a key measure of solvency is the tier 1 capital ratio, which is calculated as the ratio of equity capital and assets.As a result of the recent crisis, there are many people advocating convertible debt; debt that converts to equity when necessary (for example, when the tier 1 ratio drops below the regulatory minimum).Do you think convertible debt plays a role when you are trying to take over a bank? If so, why and how?

For Banks, a Key Measure of Solvency Is the Tier