Usually, the lead underwriter in the main selling group is also theleadbankin the other selling groups.
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Several banks, for example, might chip in to fund one extremely large loan, with one of the banks taking the role of theleadbank.
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Theleadbanktypically originates the loan, takes responsibility for the loan servicing of the participation loan, organizes and manages the participation, and deals directly with the borrower.
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Loan syndication is a risk management tool that allows the lead banks underwriting the debt to reduce their risk and free up lending capacity.
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