International Syndicated Loans and Regional Banks: Comparison between the first and the second internationalization Masaki YAMAGUCHI Yamagata University, Japan 2-3, July 2-15 SIBR, Osaka Conference This work was supported by JSPS KAKENHI Grant Number 24530340.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
International Syndicated Loans and Regional Banks: Comparison between the first and the second internationalization
Masaki YAMAGUCHI
Yamagata University, Japan
2-3, July 2-15SIBR, Osaka Conference
This work was supported by JSPS KAKENHI Grant Number 24530340.
Motivation
• Hot issue – international syndicated loans• Gunma Bank – 10 billion yen buildup by the end of FY2013
• Hyakugo Bank – 55 billion yen buildup by the end of FY2015
• Chiba Bank – 20% increase of foreign currency loans by the end of FY2017
• Growth strategies of regional banks• Loan demand cannot be expected to increase amid fierce competition in
shrinking regional economies
• Participation in syndicated loans could serve as a new source of profits for regional banks
Research Questions
1. Differences between the 1st and 2nd
internationalization
2. Characteristics of deals that regional banks participated?
Questions
Motivation
Related literature
Analysis 1 Analysis2
Result1 Result2
Related literature
• Type 1: Decision of syndication• Influencing factors on decision whether set up a syndicate or not
• binary-choice model, Syndicate = F (Information, Agency, Loan term)
• Dennis and Mullineaux (2000), Godlewski and Weil (2008)
• Type2: Size of a syndicate• what factors affect the syndicate structure
• count data model, Size = F (Opaque, Loan Characteristics)
• Lee and Mullineaux (2004) , Sufi (2007)
Related literature
• Type 3 : Difference in lending behavior• Difference between bank types
• Model; Spread = F (loan terms, bank types)
• Haselmann and Wachtel (2011), Harjoto, Mullineaux, and Yi (2006)
• Position of this study• close to the first type
• different in research object ; regional banks
Data
• Detailed loan transaction data
• Thomson Reuter – DealScan: Loan Database
• Sample: Transactions, Japanese banks participated