National Taipei University of Technology

Effects of Banks’ Capital Level on Return and Credit Risk through Lending Activity under Syndication Loans

This study uses samples of 34,082 syndication loans of publicity banks in the U.S. during the periods of 1987-2010, to test the theory of informational monopolies advantage and the theory of sacrificing reputational capital, then analyzes the impact of capital level on banking return and credit risk through its lending activity under syndication loans. The implications would be provided with policy implication to regulatory.

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