Large loans are generally made by syndicates of Eurobanks. Syndicates
of banks are an organized group of banks. The syndicate will be headed
by a lead or managing bank; other banks wishing to participate in the
loan will join the syndicate and help fund the loan. By allowing banks to
reduce their level of participation in any loan, syndicates can participate
in more loans. Thus, each individual bank reduces their risk by having
a diversified loan portfolio.