Multiple banking is a common characteristic of the corporate lending, particularly of medium-sized and large firms. However, if the firms are facing distress, multiple lenders may have serious coordination problems, as has been argued in the theoretical literature. In this paper we analyse the problems of multiple banking in borrower distress empirically. We rely on a unique panel data set that includes detailed credit-file information on distressed lending relationships in Germany. In particular, it includes information on "bank pools", a legal institution aimed at coordinating lender interests in distress. We find that the existence of small pools increases the probability of workout success and that this effect reverses when pools become large. We identify major determinants of pool formation, in particular the number of banks, the distribution of lending among banks, and the severity of the distress. Copyright 2008 The Review of Economic Studies Limited.
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机译：多元化银行业务是公司贷款的共同特征，特别是中型和大型公司。但是，如果企业面临困境，那么多个贷方可能会遇到严重的协调问题，正如理论文献所论证的那样。本文通过实证分析了多重银行业务在借款人困境中的问题。我们依赖于唯一的面板数据集，其中包括有关德国不良贷款关系的详细信用档案信息。特别是，它包括有关“银行存款池”的信息，这是旨在协调困境中贷方利益的法律机构。我们发现，小水池的存在会增加锻炼成功的可能性，并且当水池变大时，这种影响会逆转。我们确定池形成的主要决定因素，特别是银行的数量，银行之间的贷款分布以及困境的严重性。版权所有2008 The Review of Economic Studies Limited。
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