Syndicated Loans, Foreign Banking and Capital Market Development

Haselmann, Rainer; Wachtel, Paul L.

doi:10.2139/ssrn.1434502

Cited by 5 publications

(2 citation statements)

References 33 publications

(25 reference statements)

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“…Between the participating parties, loan syndications may create an avenue for increased risk sharing and may allow firms to undertake the financing of riskier projects (Haselmann & Wachtel, ). The provision of syndicated loans involves joint agreement by two or more banks to extend loans to borrowers.…”

Section: The Backgroundmentioning

confidence: 99%

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

Inekwe

Valenzuela²

2019

World Economy

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We investigate the effect of financial integration on a banking crisis. In contrast to existing works, we allow for capital restrictions while studying the impact of financial integration on a banking crisis. Using firm‐level lending and borrowing information in the global market of syndicated loans; we generate aggregate measures of financial integration and examine how countries with capital flow restrictions thrive in the wake of a banking crisis. We concentrate on basic network measures of integration for a panel of 62 countries that allow for capital restriction at any time within the sample period. Financial integration increases the incidence of a banking crisis, and capital restrictions worsen a banking crisis. However, capital restrictions reduce the negative impact of financial integration on the incidence of a banking crisis. Thus, financial integration becomes beneficial when countries allow for some forms of capital control.

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Section: The Backgroundmentioning

confidence: 99%

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

Inekwe

Valenzuela²

2019

World Economy

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“…Syndicated loans have been shown to perform different roles in large and small markets. Haselmann and Wachtel (2009) find that syndicated loans in large countries lead to high-interest rates because they are mainly used for risky lending. Meanwhile, in smaller countries, syndicated loans induce lower interest rates in small countries due to increased competition in lending and greater availability of credit.…”

Section: An Overview Of the Literaturementioning

confidence: 99%

Global financial network and liquidity risk

Inekwe

Jin

Valenzuela

2018

Australian Journal of Management

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This article investigates the impact of global financial integration on liquidity risk. Using the network approach and bank-level data for 95 countries, we find weak asymmetry in the relationship between net stable funding and financial connectedness. Our results suggest that the degree of connectedness between banks is inversely related to funding stability. We also find that banks that are strongly connected to important lenders take on more risks relative to those that have independent access to finance in the financial network. Our results are consistent and invariant when either internal or external instruments are used to resolve econometric issues. JEL Classification: F21, F34, F36, G15, G33

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Sendi̇kasyon Kredi̇leri̇ İle Hi̇sse Senedi̇ Pi̇yasasi Hareketleri̇ Arasindaki̇ İli̇şki̇ni̇n Anali̇zi̇: Türki̇ye Örneği̇

Tekin

2020

Muhasebe Ve Finans İncelemeleri Dergisi

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Syndicated loans are a special kind of credit agreement where a large number of banks from different countries can participate. Syndicated loans are an essential source of external funding, especially for developing countries. Syndicated loan reflects the trust of international financial institutions (sources of funds) and markets in banks and the banking sector. The banks that participate in the loan and amount of loan are also taken into consideration by the investors. According to the efficient market hypothesis, it is assumed that the new information about the companies will affect the stock value. In this context, syndicated loans are likely to lead to changes in stocks. In this study, the possible relationship between the total syndicated loans provided by the banking sector and the equity markets was investigated in Turkey. In this context, the data obtained from the Banking Regulation and Supervision Agency and Borsa İstanbul and the Granger Causality, Johansen Cointegration, and VECM analyzes were performed. Results show that there are short and long-run relations between variables. This relationship, which is bi-directional between the banking index and syndicated loans, is negative in the long-run. The relationship between BIST100 and the use of the syndicated loan is positive but double-sided.

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Syndicated Loans, Foreign Banking and Capital Market Development

Cited by 5 publications

References 33 publications

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

Financial integration and banking crisis. A critical analysis of restrictions on capital flows

Global financial network and liquidity risk

Sendi̇kasyon Kredi̇leri̇ İle Hi̇sse Senedi̇ Pi̇yasasi Hareketleri̇ Arasindaki̇ İli̇şki̇ni̇n Anali̇zi̇: Türki̇ye Örneği̇

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