THE SYNDICATED LOAN MARKET - POST- OR PRE-CRISIS

Unlike the traditional bank credit, the syndicated loan is provided by a group of lenders and is managed by one or several banks. Each bank in the syndicate takes part with its own share of financing, the aim being to distribute the credit risk among the participating banks. In the last decade syndicated loans turned into one of the most dynamically developing segments of the global debt market. The annual volume of syndicated loans in 2015 reached the sum of 4.7 trillion USD compared to 1.8 trillion USD in the year of crisis 2009. Syndicated loans contribute considerably to economic development because they provide an important part of financing of large capital investments in industrial production, services and the public sector. The trends in the volumes of provided loans, their distribution according to sectors and purposes, setting prices of contracts and setting up the syndicate composition are the basic factors for providing a clear indication for the investment activity, market situation and the expectations of key investors. The main purpose of the research lies in discovering the post-crisis challenges for the syndicated loan market development in Europe. The analysis of the regional and sector profiles of the provided syndicated loans in Europe in the 2009-2015 period sends contradictory messages that suggest pessimism rather than optimism. Based on that, the focus of the research widens to include issues about the evolution in the philosophy of syndicated financing, the development of the elements of the syndicated composition, the necessity to update the tools of risk management, the use of buffers and non-price compensatory mechanisms and the opportunities for making corrections in the price setting of the syndicated loan agreement.