Risk Assessment Of Financial Leasing In China

Under the new economic situation, China’s real economy has declined, and financial leasing pressure has gradually increased. The economic downturn, imperfect legal environment, immature market freedom and underdeveloped secondary market the industry increase the receivable collection pressure. And leasing industry is still at a beginning to intermediate level of natural growth, which has caused the industry collection pressure surge. For the development of financial leasing, financial leasing companies need to deal with the relationship among the scale, risk and income. This paper focuses on the risk of financial leasing in China mainly using the Analytic Hierarchy Process and Bayesian network diagram for risk assessment and control, providing the theory support for the healthy development of the financial leasing in China.At the very beginning, it has been clear about the basic concepts of financial leasing, and it limits the category of financial leasing in the research, then the kinds, characteristic and effect of financial leasing are summarized. Next, it introduces the development status of financial leasing in China, points out the problems existing in financial leasing in China. On this basis, it gives the definition of financial leasing risk and the reason causing the risk, and a detailed analysis of the financial leasing risk is given.In the next part, it constructs the evaluation index system of the financial leasing risk, providing reference and theoretical basis. It uses two methods to obtain the weight of each index in the index system, one is to combine method of questionnaire with Analytic Hierarchy Process for the weight of each index. The other is to construct Bayesian network by the risk index system, and achieve the probabilities of each node as the corresponding index weights of the index system. And sensitivity analysis is carried out on the root node, and it points out that natural disasters, equipment defects, term mismatch, internal and external fraud, the rent in arrears, the employees’ low professional quality have a great influence on the financial leasing risk in China.Finally, this paper makes suggestions to the government and financial leasing companies respectively: the government should drive the financial leasing develpemtn from the perspective of regulations and policy; while the financial leasing companies should control the financial leasing risk by combining the above conclusion.