Yeejin Jang (UNSW)

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Yeejin Jang

Finance

A seminar by Yeejin Jang from the University of New South Wales

Title: What Drives Global Lending Syndication? Effects of Cross-Country Capital Regulation Gaps

Abstract: We examine how cross-country differences in capital regulations shape the structure of global lending syndicates. Using globally syndicated loans extended by banks from 44 countries, we find that strictly regulated banks participate more in syndicates originated by lead lenders facing less stringent capital regulations. The resulting lending syndicates extend loans to riskier borrowers, charge higher spreads, and incur higher default rates. Such syndication activity also exposes both participants and lead arrangers to greater systemic risk. Overall, our finding is consistent with the explanation that strictly regulated banks seek risky deals outside the border and loosely regulated banks have an advantage to procure such deals.

Start date:

11am Friday, 11 Oct 2019

End date:

12.30pm Friday, 11 Oct 2019

Venue:

CBE LT2

Presenter(s):

Yeejin Jang

Updated:   24 September 2019 / Responsible Officer:  CBE Communications and Outreach / Page Contact:  College Web Team