The impact of banks’ financial characteristics on their decisions to participate in loan syndications is assessed. From the analysis, it appears that poorly performing banks tend, on average, to be more involved in syndications. Policymakers should perhaps monitor more closely the concentration of credit risk associated with syndicated loans held on the books of under-performing banks.
Altunbas, Y., Gadanecz, B., & Kara, A. (2005). Key Factors Affecting Internationally Active Banks' Decisions to Participate in Loan Syndications. Applied Economics Letters, 12(4), 249-253. https://doi.org/10.1080/1350485042000338617