Why is bank lending to large corporations more difficult than making loans to small firms? What...

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Finance

Why is bank lending to large corporations more difficult thanmaking loans to small firms? What additional factors are involvedin this process? Do banks have some additional tools to help inassessing credit risk of large firms? What are some examples

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Bank lending to large corporations is more difficult as large corporations have access to the corporate debt market from where they can raise large amount of money at a competitive cost and hence can lower their cost of capital So See Answer

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Why is bank lending to large corporations more difficult than making loans to small firms? What...

80.2K

Verified Solution

Question

Finance

Why is bank lending to large corporations more difficult thanmaking loans to small firms? What additional factors are involvedin this process? Do banks have some additional tools to help inassessing credit risk of large firms? What are some examples

Answer & Explanation Solved by verified expert

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