This is where
bank loans score, as no stake is required.
[H.sub.5]: Firms with higher financial leverage are more likely to have limited access to an additional
bank loan.
"From a long-term perspective banks run the risk of maturity mismatches while any change in the liquidity conditions could impact the pricing of
bank loans and the overall cost and availability of funding," Keijzer said.
Construction was the sector most affected in Northern Ireland, where the likelihood of being fully successful in obtaining a
bank loan fell from 91% to 54% of those who applied.
While the modeling of the probability of default has been the subject of many studies during the past decades (for a recent contribution on
bank loans, see Bonfire, 2009), a thriving literature on recovery rates only emerged recently, with the advent of the new Basel Capital Accord (see Bastos, 2010).
Following Blackwell and Winter (1997), we used the ratio of
bank loans to total capital, in 2004, as a proxy for the firm' s use of
bank loans (i.e.,
bank loan to total capital ratio).
During this period, total
bank loans and leases rose from 35 percent to 40 percent of GDR expanding 60 percent to $4.54 trillion (real estate loans accounting for two-thirds of
bank loan growth).
It also agreed to provide Royal Bank with "annual financial statements, to insure its real property, to assign the insurance policies to Royal Bank, to defer paying dividends to shareholders, and to use the proceeds from any sales of real property to make payments on the $14 million Royal
Bank loan."
POWERGEN has announced a pounds 300 million securitisation programme as a further step in the refinancing of its $4 billion acquisition
bank loan facility.
Forty percent of chief financial officers polled said that a commercial
bank loan will be the most effective means of generating capital for their firms in 2000.
Standard and Poor's said Thursday it would expand its
bank loan rating into the Hong Kong syndicated loan market.