This paper presents a new perspective to address some problems that arise from the mixed governance nature of a state-owned bank. First, it emphasizes that the principle of subsidiarity is at the root of decision-making processes in which the bank becomes involved based on political demands. Second, it focuses on the uses and misuses of the principle of subsidiarity, proposing the notion of the subsidiarity portfolio to address misuses and enhance the governance of these institutions. Next, it defines the bank's asset and liability portfolios and, through a break-even analysis of those portfolio returns, including the cost-benefit structure, introduces the rate of subsidiarity. It then uses the negative spread to measure the extent to which subsidiarity abuse affects the bank's return and cost-benefit structure. Finally, it elaborates on the linkages between risk and subsidiarity, on the one hand, and quasi-fiscal activities, on the other hand.