The Design of Bank Loan Syndicates in Emerging Markets Economies
40 Pages Posted: 19 Jul 2007
Date Written: July 2007
We empirically explore the influence of loan characteristics, banking and financial structure, and regulatory and institutional factors on the design of 10,930 bank loan syndicates in emerging market economies from 1990 to 2006. Our results show that the structure of syndicates is adapted to enhance monitoring of the borrower and to increase the efficiency of re-contracting process in case of borrower's distress. Main syndication motives, such as loans portfolio diversification, regulatory pressure and management costs reduction, influence syndicate design in emerging markets economies.
Keywords: Bank, Loan, Syndication, Syndicate Structure, Emerging Markets, Poisson Regressions
JEL Classification: G21, C25
Suggested Citation: Suggested Citation