The banks learn how to say no
Three years of declining margins have lenders scrambling for yield. They are turning to higher risk areas such as project finance and emerging markets. But the curse of high liquidity soon tracks them down and ruins the rates. Only by aggressive portfolio management and offering additional services can banks make money. Nigel Pavey reports.
|Top 10 Euromarket loan arrangers 1996|
|Rank||Bank||Country||Amount ($m)||No. of issues||Share (%)|
|2||Deutsche Morgan Grenfell||Germany||25,773.11||102||7.20|
|4||Chase Manhattan Bank NA||US||24,587.45||138||6.87|
|5||Union Bank of Switzerland||Switzerland||17,862.86||113||4.99|
|7||JP Morgan & Co||US||15,945.59||56||4.46|
|10||Bank of America||US||12,091.59||57||3.38|
|Source: Capital DATA Loanware|
The three-year boom in syndicated lending is proving more enduring that many market practitioners had anticipated.