The Financial Leasing Regulatory Legal Issues

The banks have been permitted to re-enter the financial leasing industry in2007,and in recent years, the financial leasing industry of China has developed very fast,this article is created in the context of that. This thesis analyzed the problems impliedof the financial leasing industry itself while the rapid development of it, complied thepresent state of financial leasing industry. And further pointing out that the lack ofsystem is the most fundamental reason to hinder the healthy development of theindustry. On the basis of analyzing of the successful financial leasing regulatoryapproach for the developed and emerging market countries, and combined with theopportunity for the unified formulation of the Financial Leasing Law, proposed todefinite the financial leasing regulatory principles and establish a unified financialleasing regulatory approach on the basis of the unified Uniform Code, improve theregulatory systems, and set up the national industry self-regulatory organization tocombine the external regulation with industry self-regulation effectively,promotingthe further development of China’s financial leasing industry. The thesis includes fiveparts:The first chapter is an overview of the financial leasing, giving a briefintroduction of the development of it in the world, following by the introduction oftwo international authoritative organizations definitions that describe the nature andcharacteristics of financial leasing, then introducing the role of the financial leasingfrom the macro and micro levels, and then discussing the necessity of the regulation of financial leasing.The second chapter describes the regulatory legal status of China’s financialleasing and main problems. There are five main issues on the basis of sorting out andanalyzing our existing financial leasing regulatory legal system: including confusingregulatory ideology; regulatory vague position; unclear regulatory approach, theunreasonable distribution of regulatory power; lacking of unified and standardizedmonitoring method. There is also a conflict and vulnerability in the existing system,and the regulatory matching system needs to be perfect and systematic. The industryself-regulation is also lacked.The third chapter introduces the successful financial leasing regulationexperience of foreign developed and emerging market countries, selecting UnitedStates, Japan, South Korea as the representatives. Pointing out that China shouldstudy the experience of other countries comparatively on the basis of respecting forthe law of development and China’s national conditions.The fourth chapter gives recommendations about completing China’s financialleasing regulatory system. First of all, the guiding ideology should be crystallized andthe regulatory position should be identified, also putting forward four principles offinancial leasing regulatory. Secondly, a reasonable regulatory approach needs to beestablished to achieve the unity of custody, which including market access mechanism,leasing business practices, internal risk control mechanism and the market exitmechanism. The regulatory power should be reverted to the China BankingRegulatory Commission, and the financial attributes of financial leasing enterpriseshould be prominent, making a distinction of financial leasing companies of the bankdepartments. Thirdly, combing the existing laws and regulations to speed up theprocess of harmonization of legislation, and improving the regulatory supportingmeasures. Finally, giving full play to the functions of the industry self-regulationassociation and promoting effective combination of external supervision and internalself-discipline, to promote the development of financial leasing industry jointly.