Seminar Series

2024 - 2025

Speaker: Steven Ongena (University of Zurich).

Title: “Joining Forces: Why Banks Syndicate Credit ”.

joint with Alex Osberghaus (U of Zurich) and Glenn Schepens (European Central Bank)

Date: Thursday, 12 December at 12h30 (Paris Time).

Abstract: Banks can grant loans to firms bilaterally or in syndicates. We study this choice by combining bilateral loan data with syndicated loan data. We show that loan size alone does not adequately explain syndication. Instead, banks’ ability to manage risks and firm riskiness drive the choice to syndicate. Banks are more likely to syndicate loans if their risk-bearing capacity is low and if screening and monitoring come at a high cost. Syndicated loans are more expensive and more sensitive to loan risk than bilateral loans. Our nfindings contradict the hypothesis that reputable borrowers graduate to the syndicated loan market. 

Here is a link to the speaker’s and the FEELab website:

https://sites.google.com/site/stevenongena/home

https://sites.google.com/view/feelabtbs/

You are cordially invited to participate in the following seminar of the FEELab, which will take place in Room 321, Lascrosses building.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr