Lead Bank

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Definition of 'Lead Bank'

A lead bank is a bank that takes the lead in arranging a syndicated loan. The lead bank is responsible for managing the loan process, including negotiating the terms of the loan with the borrower, arranging for the other banks to participate in the loan, and servicing the loan after it is made.

The lead bank typically charges a fee for its services, which is based on a percentage of the loan amount. The lead bank also typically receives an origination fee, which is a one-time fee paid by the borrower at the closing of the loan.

The lead bank is not necessarily the largest bank in the syndicate. The lead bank is typically the bank that has the most experience in arranging syndicated loans and has the best relationships with the other banks in the syndicate.

The lead bank plays a critical role in the syndicated loan process. The lead bank is responsible for ensuring that the loan is structured in a way that is acceptable to all of the banks in the syndicate. The lead bank also manages the risk of the loan and ensures that the loan is repaid on time.

The lead bank is a key player in the syndicated loan market. The lead bank plays a critical role in ensuring that syndicated loans are arranged in a timely and efficient manner. The lead bank also plays a key role in managing the risk of syndicated loans.

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