Banks feel heat as corporations draw on loan facilities

06/10/2008 | Financial Times (free content)

Citigroup analysts estimate that banks around the world committed to lend corporations hundreds of billions of dollars before the credit crisis began. Now, companies are starting to draw on the loan commitments, increasing the pressure on the banks' damaged balance sheets. "With the sector struggling for funding and with balance sheet shrinkage and capital issuance at the forefront of many banks' strategies, we see this development as clearly unwelcome," the analysts wrote.

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