aer.100.2.57 Loan Syndication and Credit Cycles英文清晰版.pdf

American Economic Review: Papers & Proceedings 100 (May 2010): 57–61 /articles.php?doi=10.1257/aer.100.2.57 Loan Syndication and Credit Cycles By Victoria Ivashina and David Scharfstein* 1 Cyclicality in the supply of business credit products. In addition to receiving interest on its has been the focus of a considerable amount of share of the loan, the lead bank also receives a research. This cyclicality can stem from shocks fee for arranging the syndication. to borrowers’ collateral, which affect firms’ The advantage of syndicated lending is that it ability to raise capital if agency and information enables originating banks to share risk across the problems are significant (Ben S. Bernanke and syndicate. Such risk sharing is valuable if banks Mark Gertler 1989). Or it can stem from shocks are themselves financed in an imperfect capital to bank capital, which affect the supply of bank market and adverse shocks require them to raise loans if agency and information problems limit costly external capital (Kenneth A. Froot and the ability of banks to raise additional capital Jeremy C. Stein 1998). As shown by Ivashina (Bernanke 1983). Both of these channels may (2009), banks weigh this diversification benefit have been at work during the financial crisis that against the reduced incentive they have to screen started in 2007. Ran Duchin, Oguzhan Ozbas, credit risk and monitor borrower behavior. and Berk A. Sensoy (2010) show that firms with