Banking · Corporate Banking & Credit Facilities
In corporate banking, consortium finance and multiple banking arrangements both involve several lenders, but they differ structurally. A consortium arrangement is distinguished mainly by:
- 1its use only for unsecured retail loans
- 2coordinated lending under a common arrangement with shared appraisal or documentation features✓
- 3mandatory government guarantee for all exposures
- 4complete absence of information-sharing among lenders
Correct answer
coordinated lending under a common arrangement with shared appraisal or documentation features
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