Question

An arrangement where a group of banks, which may not have any other business relationship with the borrower, participate for a single loan is known as:

• A. Consolidation in Banking
• B. Collateral Financing
• C. Loan Syndication
• D. Loan Diversification

Hint:

Loan syndication is a collaborative lending process for large-scale projects.

Answer 1

The Correct Option is C

Loan syndication involves a group of banks or financial institutions coming together to provide a large loan to a single borrower.- This approach is typically used for projects requiring significant capital, which may exceed the capacity of a single bank