syndicated loan A syndicated loan (or "syndicated banking institution") is a large loan. In the implementation of this loan, banking groups work together to provide funds for borrowers. Usually, a leading bank (called "planner" or "agent") is responsible for the percentage distribution of loans and transfers the bank's reserves (surplus) to other banks. Syndicated loan is the opposite of reciprocal loan, which has only one borrower and one lender (usually a bank or financial institution). A syndicated loan is larger and more complicated than the amount of participating loans. In a syndicated loan, there are often more than two banks involved. (also known as Syndicate Loans) is widely used in the industrial field and the interest repayment measures in emerging market economy countries. Banks may lack action in certain types of transactions, in the start-up stage of some geographical regions or industrial sectors, or when it is really necessary to cut start-up funds. Once a floating exchange rate benchmark (especially the London Interbank Offered Rate) is generally profitable (this benchmark is defined according to the amount of loans), banks that implement syndicated loans can obtain various funds. For-profit loans are profitable according to their seniority, and the same banks can play various roles in syndicated loans.

Like an insurance contract, a loan is an obligation to take risks. As far as a certain classification of loans is concerned, banks have their own rules. They think that 5% of borrowers may go bankrupt. If there is this assumption of 5% in the bank's loan amount, the bank needs to charge more than 1% interest on the loan to make itself profitable. Usually, banks and financial markets use venture capital standards for pricing, and set loan interest rates according to the risks of ordinary loan lines and special borrowers. However, there are generally not many problems related to larger commercial loans. If one of the large commercial loans defaults (that is, the above 5% happens), the bank will lose all its property. Therefore, the best choice should be to separate all banks or "unite" their large loans with each other, so that each bank will get its share of the loan portfolio. For those syndicated loans, the reason why they are often evaluated is that they can avoid large or unexpected losses of property, and instead, they will generally suffer only a small and predictable loss. Less and more predictable losses will attract the attention of many management teams, because such losses are usually acceptable. Those companies with "continuous and smooth" or more stable profits can get higher stock value compared with their profits, and those managers who make profits often start with stocks first. Warren Buffett criticized this, saying that for many times, this behavior was absurd. If banks continue to be a representative without syndicated loans, and if syndicated loans can reduce their marginal interests, a bank will get more funds without syndicated loans for a long time.

in the investment banking and insurance industries, this power source plays a similar role-in these sectors, similar "syndicated loans" will also occur. In order to prevent all borrowers from flocking to those syndicated banks, one of the many syndicated banks will play the role of the working organization of all syndicated members and may become the connection point between them and borrowers.

syndicated loan market can be roughly divided into two categories. The first one is designed for small companies (the loan amount is generally between $2 million and $25 million), which is characterized in that a bank group generally provides a loan with a fixed amount. Loans larger than this are often a more open transaction and actually a more dynamic transaction, so they are more like a regular public debt. These loans include hedge funds, pension funds, bank loans and other investment means. Before the subprime mortgage crisis, although the larger syndicated loans were "represented" by a bank, most of them were also sold to the international financial market in the form of "secured loan contracts". In fact, for these large loans, the agent banks often take back their short-term loans and invest them in the form of loans to borrowers who sign the "secured loan contract". Due to the subprime mortgage crisis, the scale of many international fixed (property) beneficiary (loan) capital markets has greatly shrunk. Therefore, many banks are entangled in loans that they are unwilling to lend for only a few months. If possible, they will never do this kind of loan business. These loans are called "linked loans" and are also the reasons for the recent losses.