Syndicated Loans in Emerging Markets
LARGE Working Paper No. 87
34 Pages Posted: 28 Apr 2008
Date Written: March 2007
There has been a considerable expansion of the volume of syndicated loans in emerging markets in the recent years. We provide the first analysis of the determinants of the decision of banks to syndicate a loan on a sample of loan facilities from 50 emerging countries. We show the significant role of loan characteristics and of financial development, banking regulation, and legal institutions, on the decision to syndicate a loan. We support the efforts of authorities to increase banking competition and efficiency, and to implement binding banking regulation on capital requirement to promote the expansion of syndicated loans.
Keywords: Bank, Loan, Syndication, Emerging Markets, Logit Regressions.
JEL Classification: G21, C25.
Suggested Citation: Suggested Citation