The Risk Analysis Of Commercial Banks Involved In The Financing And Leasing Business

Financial leasing is originated in the traditional way of lease. In many countries, it has become a very important financing. But for the limit of the finance leasing company’s own power, the cooperation with commercial banks and other financial institutions to jointly promote the running of the financial leasing projects becomes necessary. For financial leasing involves multiple parties and contracts, any problem is likely to lead to the risk. What’s more, the participating of the commercial banks increases the complexity of this process. Therefore, the evaluation and analysis of the commercial banks involved in the financing and leasing business risk is particularly important. However, risk of the commercial banks involved in the financing and leasing business may come from many aspects, and each aspect of risk can be further subdivided into multiple elements. In addition, the risk is mostly qualitative evaluation, such as "risky" and "less risky". It lacks an evaluation of more specific quantitative results, which will increase the difficulty of the evaluation and analysis of the commercial banks.To solve this problem, here choose the analytic hierarchy process and fuzzy evaluation method to evaluate the risk of commercial banks. Firstly, use the analytic hierarchy process to divide risk for the commercial banks into3levels-the target layer, criteria layer and index layer. Then determine the relative importance of all aspects of risk and their influencing factors, and use fuzzy comprehensive evaluation method to rate the risk level of each elements of the index layer. Combined with previous respective weight to do fuzzy calculation, we can obtain the level of risk of the upper level elements, as well as the risk level of the target layer elements. At last, use the relevant risk weights and their risk level to do fuzzy calculation again so that we can obtain the final results of the risk level of the commercial banks. This result is a specific number corresponding to the level of risk. The quantitative risk assessment results make it more convincing and also easier for managers and decision makers of the commercial banks to make appropriate management and right decisions. This article set a commercial bank’s real participation in a project as an example to analyze the three parts of risks it faces. The final result shows that the level of risk is in a relative better area of risk and benefit. So involved in the project is the commercial bank’s the right choice. This article also points out that in order to response to risk, the commercial banks mainly can do by spread and transfer, suppress and avoid and compensate risk, which is a suggestion for the commercial banks to properly handle the risk.