When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as.....

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as____

A	Consortium
B	Syndication
C	Multiple Banking
D	Participation

Explanation:

Detailed explanation-1: -In the financial world, a consortium refers to several lending institutions that group together to jointly finance a single borrower.

Detailed explanation-2: -Loan syndication is a process that involves multiple banks and financial institutions who pool their capital together to finance a single loan for one borrower.

Detailed explanation-3: -When more than one bank are allowing credit facilities to one party in coordination with each other under a formal arrangement? This arrangement is called as syndication. A syndicated loan is offered to a single borrower by a group of lenders, in this case, banks when the borrower needs fund for a large project.

Detailed explanation-4: -Credit facilities are a type of pre-approved loan which allows the borrower to borrow money on an ongoing basis over an extended period of time, rather than applying for a new loan each time the borrower needs more money.

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