A Study On Development And Risk Management Of Finacial Leasing Insdustry In China

Financial lease is a part of lease nowadays, which was invented in USA 1950s, just has 50 years' history. Financial lease is a kind of financing method which pursuing financing goals by leasing physical goods. This method was warmly welcomed by companies once introduced, and then adopted by many entrepreneurs around the world. Financial lease is the second best method of international equipment investment, in the mean while, bank credit and loan is still the best option. Financial lease was started in the beginning of the reform and opening-up in our country, in the 20 years period, it developed gradually accompanying the reform and opening-up and economic structure shift, ups and downs. Since the level of the studying and experiences in this field is relatively low, these drawbacks blocked the way of developing financial lease industry in our country, on the other hand, the risks of operating a financial lease company are heavily increased. What's more, financial lease is a complex financial activity, which is full of risks and challenges. Therefore, emphasizing the study about risk prevention and control in financial lease companies has become one of the most important premises for the companies to develop and grow up, as well as complete the risk control mechanism.This paper begins with the main content of financial lease, and trying to make readers get full ideas of financial lease via analyzing and comparing this financial method with others by their definition, types and characteristics. On this basis, this paper reviews the history and current situation of financial lease's development, gives suggestions, and then lays the basic foundation for promoting financial lease industry by enhancing risk management. This paper exerts the designing of risk evaluation indicators and CAMELS risk management measures to offer the basis for risk management of financial lease. Lastly, this paper offered suggestions on preventing and neutralizing the risks of operating financial lease based on these analyses. Narrative makes up most of this paper, accompanying graphs and other data, composed method of comparative analysis and personal working experiences. The suggestions offered in this paper are practically operable, and would certainly do some helps for accelerating the developing paces of financial lease industry in China.