... Mexico, Poland, Russia and Thailand) banks and other financial institutions account for most domestic bond issuance. Subordinated bond issuance has the advantage for banks of being recognised ... And a bond market may improve the health of banks, by improving market discipline. 2. Competition between banks and bond markets 2.1 The historical development of banking and bond markets ... holding company, may help in this. 3.2 Banks as issuers of bonds Banks use bond markets to supplement deposits as a source of funds. Indeed, in many cases (eg Brazil, China, Germany, India, Indonesia,...