As A Financial Globalization Instrument, Features, Operation and Determinants of Syndicate Loans in Commercial Banks

Abstract

Purpose – In this research, we tried to reveal the internal and macroeconomic factors that lead banks to use syndicated loans as an alternative funding, together and with their relative importance levels.
Design/methodology/approach – Commercial banks operating in Turkey in the 2014-2024 period and ranked in the top 15 in terms of asset size were included in the research, and quarterly periods from the beginning of 2014 to the beginning of 2024 were taken into account in the financial data and macroeconomic data of the banks. In the research conducted with the panel data analysis method, predictions were made using the Driscoll-Kraay method, which is one of the estimators that can produce robust standard errors.
Results – As a result of the research; It has been determined that syndicated loans interact negatively with the capital adequacy ratio, return on equity ratio, deposits to total assets ratio, asset size, real effective exchange rate and positively with the acid test ratio.
Discussion – Considering the negative relationship between return on equity and deposit ratio and syndicated loans, it is significant that banks should take the use of syndicated loans into account when choosing alternative funds, and considering the negative relationship between asset size and syndicated loans, it is meaningful for small-scale banks to focus on profitability and growth targets through the use of syndicated loans.