On the flip side, many factors make going for
bank loans a not so attractive option.
Each region or each industry has private characteristics that can affect firms' possibility of attaining
bank loan as well as determinants of firms' capital structure.
The sensitivity of the loss given default rate to systematic risk: new empirical evidence on
bank loans. Journal of Financial Services Research, vol.
We then created two subdependent variables for the use of
bank loans. The first one (for the whole sample)--probability of having a bank loan--is a binary variable (yes/no) on having a
bank loan.
In the process,
bank loans expanded the money supply through the creation of new bank liabilities/deposits.
The funds were used to pay principal and interest owed on the $14 million Royal
Bank loan."
Group finance director Peter Hickson said: "Finance of this kind is less expensive than the
bank loans we originally arranged to enable the US deal.
"There are several reasons why businesses choose to rely on commercial
bank loans when they need to raise capital," says David King, branch manager of RHI Management Resources' Calgary location.
The total project cost of US$123.8 million will be financed by the World
Bank loan and a US$38.8 million contribution from the Government of Panama.
More specifically, two key factors shape the way in which monetary policy works: the extent to which banks rely on reservable deposit financing, and hence adjust their loan supply schedules in the wake of open market operations; and the extent to which certain borrowers in the economy are "bank-dependent," and therefore cannot offset these Fed-induced shifts in
bank loan supply easily.
This article reports on a study of
bank loan officers conducted to determine how this group of users perceived some of the new audit reports compared with former reports.