The variables from bank balance sheets that are expected to affect bank lending decisions include nonperforming assets, bank capitalization, return on equity, and return on assets. The expectation is that nonperforming assets will negatively affect bank lending, while higher capitalization, return on equity, and return on assets will positively affect lending. The lending rate, however, is not included because data are not available in most cases. Although data availability is a key constraint, lending decisions more often reflect bank balance sheet variables and the length of the relationships they have with a project sponsor, rather than the lending rate itself. Further, the number of banks in a syndicate may have a positive effect for expanding bank lending, especially where the legal risk is high. A dummy variable for multilateral development banks in a syndicate can indicate whether these institutions provide additional comfort to deposit-taking banks.