The Innovational Significance Of Financial Lease To Bank Management And The Risk Control

Leasing business originated in the United States, in the contemporary Western countries, financial lease is the second largest financing way, only less than bank loan, which plays a very prominent role in promoting economic development. According to the relationship between the funds owner and the funds user, the financing pattern divides into direct financing and indirect financing. Direct financing refers to the funds owner loan the funds to the user directly without the third person, bond and stock belong to this kind. Indirect financing refers to the funds user get the funds from the owner via the third person, loan and affiance belong to this kind. According to this standard, financial lease belongs to indirect financing. However, financial lease is different from both financing way mentioned above, it a combination of financing and equipment lease, with the real purpose of financing and the form of equipment. Therefore, these characteristics of financial lease have different results from other financing methods.Such characteristics of financial lease from the traditional financing method make it have more special effect than other financing method. In order to promote the transforming efficiency of money capital to industrial capital, and product sales and market's consumption capacity, Various special policies were made on financial lease by many governments to make it have different function in the field of tax, financial information publication, investment and so on.In general, two motives are considered for enterprises to choose financial lease as the factor of financial efficiency concerned: First, the difference in taxation, second the financing cost. As tax differences considered that enterprises could get more benefit than usual financing mode because of the preferential arrangement of tax policy and financing policy. In the method of financial lease, part of the tax revenue is kept in the enterprises, and the left transfers to the leasing company as leasing cost. Specifically, the so-called financing costs means that not only interest costs and financing costs did the enterprise compare but it will expand the scope of technical depreciation costs, market risk etc. Through financial lease, the possible future risk could be avoided or reduced to a low degree.This paper will explore financial lease business on the background of China's economic realities. On the one hand, "Different industry separate operation " is one important principle in the financial system and it caused a serious obstruction for development of financial lease. This violates the principle of the characteristics of the leasing business and the law of the market economy. It makes the development of the leasing business in China harder. On The other hand, after three state-owned commercial banks'IPO in the stock market in 2006, more prominently shown that the way of making profit is still single and the situation of product homogeneity is more serious. Fundamentally, civil commercial banks haven't the competition with foreign banks yet. To change this situation, it's an effective way to introduce the bank's capital into the leasing industry and banks become the controlling shareholder of the leasing company. Bank has abundant, low-cost capital and rich clients, and could make the leasing business have the rapid development as that of China's economy. Meanwhile, through holding leasing companies banks could have great ability of innovating financial products. In accordance with their traditional customer demand the four major commercial banks could develop their respective core competitiveness of financial products. From the micro perspective, bank holding lease company, it could enable the leasing industry to make rapid progress. From the macro perspective, the liquidity surplus of banking system has new outlet as well as the asset structure of bank has been optimized. And the problem of insufficient of general demand has been mitigated to a certain degree.The paper is divided into five sections. The first part is the analysis of the leasing concept. It goes from two levels: one is about the concept sort in the birthplace of leasing–America, two is the definition in our country. According to authoritative departments of the United States (Association), the core of the concept for financial leases is whether the risks and benefits of leasing have all (or most) shift. In China, "Contract Law" and "Accounting Standards for Business Enterprises" ,two different levels of the regulations ,both defined the concept of leasing. The former more care the form and the latter are concerned about the content of the transaction. From the economic reality, the latter is more significant. Nevertheless, the financial lease has the form of equipment and (at least) three partners concerned with (at least) two leasing contracts, and the character mentioned above won't be different by the mixed operation of financial industry.The second part follows the time line, including a brief review of the course of development of our leasing business, the current situation and the difficulties encountered in the development. Moreover, it's discussed the business model of financial lease both for now and for the future to settle the matter of funds shorting. Fund is the first problem which would be "the shortest board". Actually, the matter is all due to the leasing company's background, which hasn't sufficient fund and this kind of capacity for the indirect financial business. It's a necessary way to the great development for financial lease that leasing business should be combined with the bank's capital to achieve the cooperation. And the ultimate goal of this paper is located in the point that bank's capital enters the leasing industry and become the holder of the leasing company.The third part take the enterprises (lessee) as a visual angle, from the test of the leasing application theory and the compare of two different methods of financing perspective, Analysis the influence factors for the option of financing. Listed company data statements to the leasing application of the theory test a tax financing costs of these two factors, and factors affecting the business of financing lease financing model. With the comparison in the stock and credit financing, we can see that the enterprises in need of long-term financing or special purpose finance more inclined to the mode of leasing financing.Part IV takes the bank as the starting point for consideration, discussing the necessity of the bank's capital entering the financial lease industry and the possibility of the financial product innovation by financial lease business for bank Discussion about the necessity included the inevitability for a logical relationship and the inevitability of reality. The analysis of the financial product innovation for bank is carried the risk control, asset structure, the model of profit earning and the customer marketing. Through logic inference step by step, the fifth part goes on a preliminary study of risk control in the age of financial mixed-industry. As bank capital enter the leasing industry, both the traditional banking business and the leasing business would develop rapidly, with the increasing risk possibility of the transmission between two industries. On the function of the firewall in the company, the papers made a preliminary exploration about the risk of financial lease business, which involve the complexity, the generating mechanism, the format of the risk and different strategies and measures to risk.