Feasibility Analysis Of Setting Financial Leasing Companies For Small And Medium Banks

2007, China Banking Regulatory Commission promulgated the "Measures for the Administration of financial leasing companies", the approach allows commercial banks to set up financial leasing companies. and then, the major banks of china have set up financial leasing companies, until the end of2012, there are11domestic banks set up financial leasing companies through various means. Setting up financial leasing companies for commercial bank is a key step to improving their liquidity more efficiently, compensating for limitations of credit business, improving service capabilities, and carrying out Financial innovation.In recent years, with the continuous development of small and medium commercial banks, a number of small and medium commercial banks have reached minimum conditions to set up financial leasing companies. Therefore, a number of small and medium banks have recently made application for regulatory authorities to set up financial leasing companies.Do the small and medium commercial banks have the feasibility condition to set up financial leasing companies? How to solve the difficulties to set up financial leasing companies for the current small and medium banks?This paper conducted a feasibility analysis to set up financial leasing companies for small and medium commercial banks, Summarized the advantages-. disadvantages and necessity and significance. And also give some effective proposals to solve the difficulties involved.The main contents include:Financial leasing industry as a whole overview, development of the financial leasing companies setted up by banks, the opportunities and challenges faced by small and medium banks to establish a financial leasing companies, the necessity and significance of establishing a financial leasing companies for small and medium banks, the suggestions for this argument, and This article concludes that it’s feasible for small and medium banks to set up financial leasing companies.