1. Credit risk

The risk essence of syndicated loans is "loan" first, and then "syndicate", so its credit risk also comes from the poor performance of borrowers. When the borrower is unable or unwilling to perform the pre-determined contract, it will cause huge losses to the bank.

2. Underwriting risk

Underwriting risk is mainly aimed at the lead bank of syndicated loans, and refers to the losses caused by the failure to complete the underwriting task of syndicated loans within the specified time and according to the pre-agreed conditions.

3. risks of participating banks

for participating banks, the information memorandum is an important written material to understand the background of the construction project and the borrower, but in general, the lead bank does not guarantee or guarantee the accuracy or completeness of the information. Therefore, the information in the information memorandum is only a reference for participating banks to investigate and evaluate the credit risk of borrowers, and cannot be regarded as a promise and guarantee for the future situation. Because the participating bank can't directly obtain the first-hand information of the borrower, it bears much greater credit risk of the borrower than the lead bank.

4. Post-loan management

Although the participating banks in syndicated loans entrust the post-loan management responsibility to the agent bank, for some risky projects, the participating banks cannot passively accept the information provided by the agent bank, so they must establish and improve their own post-loan management system. At the same time, participating banks should strengthen information communication with correspondent banks during the duration of the syndicate, keep abreast of the borrower's situation, attach importance to contact with other participating banks in the syndicate, and hold syndicated meetings regularly to realize the sharing of customer management information.

5. Legal risks

The risk of the financing proposal and information memorandum submitted by the lead bank shall be stated to avoid or reduce its own responsibilities. The syndicated participating banks should pay attention to legal issues such as the legality of the loan and the validity of the agreement. Lawyers should check the terms of the syndicated loan contract and participate in the contract negotiation. The correspondent bank shall act in strict accordance with the authorization of the syndicate, pay attention to avoid taking responsibility for conflicts of interest, and pay attention not to collect secret profits.

6. Anti-money laundering

Banks' prevention and monitoring of money laundering are mainly reflected in knowing customers, keeping transaction records and reporting suspicious transactions.