Risk Analysis in Lending to LDCs

Anthony Angelini, Maximo Eng and Francis A. Lees

Chapter 4 in International Lending, Risk and the Euromarkets, 1979, pp 120-167 from Palgrave Macmillan

Abstract: Abstract What is the proper mix of portfolio considerations when a commercial bank engages in international lending? How should considerations of liquidity, profit, and safety be balanced? What is the appropriate level of risk assumption by a bank when it participates in international lending? These questions become basic considerations when undertaking an analysis of risk in international lending. By their international lending, banks have not only added to their own profitability,1 growth, and ability to service customer needs overseas: they have also recycled petrodollars and thereby prevented a major international payments and transfer-of-purchasing-power calamity. Moreover, the international banks have contributed to a more orderly evolution and development of world financial markets. In short, while the major international lending banks have not consciously embarked upon a course of action whereby they would assume important responsibilities for financing world prosperity and growth, the end result of their international loan activities has been to make important contributions in the above-mentioned areas.

Keywords: External Debt; Capital Account; Country Risk; Loan Portfolio; Debt Relief (search for similar items in EconPapers)
Date: 1979
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-03807-7_4

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DOI: 10.1007/978-1-349-03807-7_4

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