The banking consortium is managed by the bank in the following cases: a PSB president said: „We have already begun to convince them (borrowers) to close a consortium that benefits both borrowers and banks, as they can exchange (bankers) opinions on interest rates, margins, bank account monitoring and future borrower requirements.“ He declined to give a precise figure, but said credit accounts of more than 300 loans had been obtained to enter into consortium agreements. Thus, the syndicated lending system offers flexibility and opportunities for risk-sharing between banks. The system is seen as mutually beneficial to both banks and customers. Bank manager/lead is responsible for the repayment and disbursement of the loan amount as well as the provision of the borrower`s financial statements to the banks involved in the union borrowing process. The manager/credit bank is paid by the borrower for these services. The managing bank may recruit one or more banks other than the co-managers who participate in the royalty to assist executives in their duties. Post-sanction monitoring: The regular meeting of consortium members is a normal requirement in which banks share information on balance sheet management and the performance of the credit unit. As part of syndicated financing, banks formally partner through an inter-institutional agreement to cover borrowers` loan needs; In the case of project financing, banks and credit institutions meet. In accordance with the October 1996 credit policy, the RBI allowed each consortium to develop its own standards for lending to consortia. A senior SBI official said that bankers were still able to be in a consortium, but that it may not work in all cases. If borrowers have a good repayment balance and a strong credit profile, some banks do not want to join a consortium.

Syndicated loans mean that two or more banks allow the corresponding banks to lend in local currency and abroad and to credit transactions to borrowers within a specified time and ratio, based on the same credit conditions and the same credit agreement. The major syndicated lending banks are syndicated loan organizers and arrangers who support the organization of consortia and are responsible for the distribution of syndicated loan units. 《Consortium-Business Guidelines of the Banking Regulatory Commission states that syndicated loans are required in the following circumstances: 1: money from a single credit transaction up to RMB1 billion or more than RMB1 billion; 2: financing by wholesale and large projects institutions and financing all kinds of large amounts of cash; 3: the capital of an individual company or individual project greater than 10c/o the net balance of the lending bank;4: total credit of the individual customer greater than 15 c/o the balance of the lending bank;5: borrowers who finance themselves through a competitive selection of banks and financial institutions; 6: any situation in which the bank`s annual limit, time limit or the highest credit limit of the customer is exceeded after the execution of the loan; 7: headquarters of the competent marketing department of the bank or risk management services offering the form of consortia.