A Research On Credit Risk Identification And Management Of Financial Leasing Company

Financial leasing, integrating bank credit and physical credit, is animportant supplement of bank loan and a fund source of SMEs. Because ofthe growth of GDP and the development of SMEs, the financial leasingindustry has economic and market foundation in China. However, the hugecredit risk facing the financial leasing companies limits their development,and even threatens their survival. Under this context, the dissertation studiescredit risk identification, evaluation and management.Risk of financial leasing companies can be divided into three typesrespectively from the view of risk source and risk characters, which affecteach other. Credit risk, the research object of this paper, is more complexthan other types of risks. As the first step of risk management, financialleasing companies need directly or indirectly acquire information to identifythe credit risk in respect of leaseholder’s willing and ability to repay. Creditrisk evaluation is the second step of risk management. Currently, the existedcredit risk evaluation models are applicable in Chinese financial leasingcompanies to different extent. The dissertation presents two credit risk evaluation models based on Analytic Hierarchy Process(AHP) method andlogistic regression model. In the end, credit risk management measures arediscussed in the order of before, in the process of and after the leasingproject.