Leasing Interest Rate Decision And Credit Review Strategy Analysis For HX Leasing Corporation

HX Financial Leasing Corporation faces some problems recently,such as the increase of bad debt rate, high employees'turnover rate andthe uncertainty of future. The leasing interest rate decision and creditreview strategy for HX Financial Leasing Corporation is based onCorporate Financial Theory which has two fundamental hypotheses ---rational behavior and efficient markets. This paper introduces the detailprocess and strategy of leasing interest rate decision and credit reviewand stakeholders in these two processes; then based on informationparadigm to analyze the pricing and credit review strategy. The increaseof bad debt rate problem is Adverse Selection problem, which can besolved by improve the information transparency between lessee and HXFinancial Leasing Corporation. High employees'turnover rate and theuncertainty of future is Moral Hazard problem. The best way to solveMoral Hazard problems is to incentives and penalties. We hope ouranalysis could help HX Financial Leasing Corporation find its way for future development and prompt the prosperity of China Financial LeasingIndustry.