The Study Of Risk Control On Bank Loans For Financial Leasing

Financial leasing is an economic activity which has relatively long history. This article would introduce the modern sense of Financial leasing which is a type of combination with capital lease and goods lease. In United States, its first Financial leasing company was established in 1952, which provided financial services for enterprises, special for long-term direct investment projects, special for large mechanical equipment, including mechanical equipment and ships, aircraft, etc. Since then, this new mode of financing has gradually been applied into other countries.Besides Financial leasing Company, banks also play a very important role in this special finance market. It's possible for the Financial leasing industry live alone without the participation of banks. At the same time, the banks also need to exploit this new large business for its profits. However, risks accompany with the interest, how to avoid the financial risks should be an important topics for economics learner.First of all, the article begins to discuss the study background and meanings, and then it analyzes the complex relationship between the Financial leasing industry and banking industry. After China entered WTO, local banking received lots of business opportunities, but also will be facing fierce competition from foreign banks which are mostly implement diversifying marketing strategy, many banks have set up a lease department, or have their own subsidiary lease firm. Thus, in order to win more domestic bank loan market, local banking must pay attention to the Financial leasing business, and build up the tight cooperation relationship with the Financial leasing company. Above all is that local banking should establish a complete Financial leasing loan operation system.This paper reviews the development history of Financial leasing in different stages. The paper introduces the definition and character of Financial leasing, the main mode of the banks how to process Financial leasing business, then the paper begin to discuss the feasibility of banking participate into the Financial leasing activity.The paper studies the real cause of the risk of this economics activity and its behaviors, deeply studies the multiple risk factors from Financial leasing itself, including the systematic factor and unsystematic factor. So the paper could find out all kinds of risks while banks capital entering into the business. Then the paper states the credit risk and distinguishes its type.After the discussion of risks type, the paper begins to study how to avoid them. The paper tries to set up a data model which could help to analyze the credit risks, a type of risk the banks could understand easily. Besides the model, the paper also provides some preventive measures which are used for other types of risks. Finally, the paper set up a backup adjustment measure, which is used for some special project. All of mentioned measures are used to help the banks build up an intergraded assessment system.The paper states the positive utility of this data model, which is used to assess the risks before banks loans money to Financial leasing firms. The paper also has some narrow limitation caused by some uncontrollable factors. The paper also imagine the future risk control model, and hope the paper could be reference for local banking.