▁lead ▁bank . ▁If ▁a ▁l ending ▁institution ▁isn ' t ▁doing ▁much ▁business ▁on ▁its ▁own , ▁or ▁is ▁in ▁a ▁slow ▁market , ▁it ▁can ▁team ▁up ▁with ▁a ▁prof itable ▁" le ad ▁bank " ▁in ▁a ▁health ier ▁market ▁to ▁generate ▁more ▁l ending ▁income . ▁Bu ying ▁participation ▁lo ans ▁is ▁a ▁way ▁for ▁banks ▁to ▁divers ify ▁their ▁assets . ▁By ▁invest ing ▁a ▁variety ▁of ▁lo ans ▁in ▁different ▁local es , ▁they ▁reduce ▁their ▁risk ▁and ▁expos ure ▁to ▁potential ▁losses ▁if ▁a ▁cal am ity , ▁such ▁as ▁a ▁natural ▁dis aster ▁or ▁severe ▁economic ▁de pression , ▁were ▁to ▁strike ▁their ▁particular ▁community . ▁S elling ▁loan ▁particip ations ▁allows ▁a ▁bank ▁to ▁reduce ▁its ▁credit ▁risk ▁to ▁a ▁customer ▁or ▁specific ▁community ▁that ▁ent ails ▁greater ▁than ▁average ▁risk . ▁S elling ▁participation ▁lo ans ▁allows ▁the ▁lead ▁bank ▁to ▁keep ▁control ▁of ▁more ▁of ▁an ▁important ▁customer ▁relationship ▁or ▁even ▁an ▁entire ▁customer ▁relationship ▁of ▁large ▁customers ▁of ▁the ▁bank , ▁instead ▁of ▁sharing ▁the ▁relationship ▁with ▁other ▁compet ing ▁banks . ▁ ▁References ▁ ▁Category : Cred it ▁Category : Lo ans <0x0A> </s> ▁Kevin ▁P . ▁Ryan ▁is ▁an ▁American ▁invest or ▁and ▁entrepr ene ur ▁who ▁has ▁founded ▁several ▁New ▁York - based ▁business es , ▁including ▁G ilt ▁Gr oupe , ▁Business ▁Ins ider ▁and ▁MongoDB . ▁Ryan ▁helped ▁grow ▁Double Click ▁from ▁ 1 9 9 6 ▁to ▁ 2 0 0 5 , ▁first ▁as