The Risk Management Of Financial Leasing Business In China's Commercial Bank

China is introducing financial leasing from the eighties of last century and making it one of the first two financial innovations from the developed countries. On one hand, the purpose of introducing financial leasing is to facilitate absorption of foreign capital initially; on the other hand, it has a greater price advantage for leasing than buying those large-scale equipments that our country has no capacity to produce. But after twenty years of development, finance leasing is progressing rather slowly. Generally speaking, it still remains weak. In 2007, before China's commercial banking are permitted to run financial leasing business, the total market transaction of China's financial leasing industry are only 24 billion U.S. dollars, and the penetration of rental market is less than 1%. Therefore, as a financial instrument with increasingly powerful function, financial leasing is far not playing its important role in China's economy.The development of financial leasing in our country's commercial banks will not only help improve the business competitiveness of the banks, but also increase the overall strength of domestic leasing companies and change the structure of the domestic rental market fundamentally. Compared with the financial leasing agencies of foreign banks, which have adequate funds, perfect risk control mechanism and variety of business, financial leasing sector of China's commercial banks must accelerate the establishment and improvement of our own risk management, and carry out a variety of financial products and innovations in order to carve out a world of our own, which will bring a positive,healthy and rapid development to our domestic bank leasing industry.In the research process, I always remember the basic guiding ideology that the theory is sublimation of practice, and theory must be able to accept the test of practice then direct it. In the ways of analysis, I combine the qualitative analysis quantitative analysis, and collect a large number of data for comparative research. However, the risk of financial leasing in commercial banks has its own characteristics, particularly its comprehensive features, which makes the identification, measurement and management of leasing risk special, so the risk management of financial leasing in commercial banks is different from in other financial institutions. Therefore, this article will firstly elaborate the risk factors of financial leasing business in China's banking industry comprehensively, then descript and analysis the special nature of the risk of financial leasing business in domestic commercial Banks; furthermore, I will summarize the experience of running financial leasing business in the banks of United States and Japan; finally, some practical management methods with the reference of actual situation in our country will be raised, which can improve capability of risk resistance in the financial leasing sector of domestic commercial banks.