On Securitization of International Syndicated Loans

Since 80s, along with the heating-up competition in finance industry and the liberalization trend of financial supervision, a tendency of integration appears in world three financial service fields, namely banking, insurance, and security. It threats the banking business. The banking industry that always possesses the core position in financial system faces enormous challenges. On the other hand, all countries regulate standard rate of interests for commercial banks’ deposits and loans. Therefore, the margin between banks’ assets and liabilities is limited, which leads to more fierce competition among banks. Under this background, the securitization trend serves as a bridge between direct financing and indirect financing, creating more opportunities for banks reducing costs and increasing profits, and improving banks’ competence. Starting from international syndicated loans, this paper analyzes the primary mode and the advanced mode of international syndicated loans’ securitization, compares their characteristics, and further studies reasons for securitization of international syndicated loans.