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Syndicated Loans in Emerging Markets

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  • Christophe J. GODLEWSKI

    (Laboratoire de Recherche en Gestion et Economie, Université Louis Pasteur)

  • Laurent Weill

Abstract

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.

Suggested Citation

  • Christophe J. GODLEWSKI & Laurent Weill, 2007. "Syndicated Loans in Emerging Markets," Working Papers of LaRGE Research Center 2007-03, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    • Handle: RePEc:lar:wpaper:2007-03
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    References listed on IDEAS

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    More about this item

    Keywords

    Bank; Loan; Syndication; Emerging Markets; Logit Regressions.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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