The Research On Development Opportunity And Risk Of Financing Leasing In Tianjin Free Trade Zone

Financial leasing, a new type of mixed transaction mode, first appeared in the United States in the 1950 s. It is a new type of financial industry combining financing with leasing assets, and realizing financing through leasing assets. Currently, in some developed countries, the proportion of financial leasing has exceeded that of investment in the whole the economy, loans and other financial business, which has a greater and greater impact on the modern economy.Financial leasing was introduced into China in the 1980 s. Although its development in Tianjin started at a later time, it has obtained rapid development under the driving power of the “first try and first pilot” policy. In 2015, the Tianjin Free Trade Zone was established under multiple strategic backgrounds including “coordinated development of BeijingTianjin-Hebei”, “One Belt And One Road” and “Internet+”. With the assistance of these opportunities, financial leasing in Tianjin will have a better development prospect. At the same time, although financial leasing in Tianjin developed rapidly in recent years, most of the financial leasing companies still lack awareness of risk control and management of financial leasing. In addition, the construction of laws and policies about financial leasing is relatively slow in China. All of these factors seriously restrict the development of financial leasing. This paper makes a comprehensive and careful analysis on each risk the financial leasing companies may face and uses the CAMELS risk rating method to carry out risk rating on Bohai Leasing co. LTD and ICBC Financial Leasing co. LTD. Based on this, the paper puts forward corresponding strategies for the recognized risks.The paper is divided into six parts.The first part is Introduction. First of all, it introduces the research background and the meaning of it. Secondly, it introduces the research contents, research methods, expected innovation points and deficiencies. In the end, it makes a systematic summary on the domestic and abroad research results and gives an objective evaluation to the current research status of this field in China.The second part is about the current development status of the financial leasing in Tianjin. It mainly expounds the present development state, advantages and relevant data of financial leasing in Tianjin, and illustrates the efforts made by the Tianjin government in financial leasing industry as well as the differences between Tianjin Free Trade Zone and other areas.The third part is about the development opportunities for financial leasing industry in Tianjin Free Trade Zone. The establishment of the Tianjin Free Trade Zone brings more preferential policies for financial leasing in Tianjin. And in the collaborative development of Beijing-Tianjin-Hebei and the strategy of “One Belt and One Road”, Tianjin canundertake the financial leasing business of Beijing and Hebei province, thus making Tianjin a “free port” of developing financial leasing. With the rapid development of Internet information technology, the Internet finance is continuously changing the traditional pattern of financial business. The Internet finance brings financial leasing industry developing opportunities with a new business mode.The fourth part is about the interior and exterior risks of financial leasing industry in Tianjin Free Trade Zone. Based on the study of the current development status of financial leasing industry in Tianjin Free Trade Zone, the paper points out various internal and external risks faced by the financial leasing industry in the Tianjin Free Trade Zone.The fifth part is the case analysis of risk assessment on the financial leasing companies.Taking the Bohai Leasing co. LTD. and ICBC Financial Leasing co. LTD. as an example,this part firstly introduces the six rating indexes in the CAMELS rating method. Then, it analyzes each financial index of the two companies and makes a general evaluation on the overall risk level that financial leasing industry is on in the Tianjin Free Trade Zone according to the analysis results.The sixth part is the corresponding strategies dealing with the risks faced by the financial leasing industry in Tianjin Free Trade Zone. Based on the study in the fourth and fifth chapters, the paper puts forward the strategies of dealing with the exterior and interior risks faced by the financial leasing industry from three perspectives including government,leasing industry and financial leasing, so as to ensure the normal operation of the financial leasing industry and its business and reduce the possibility and damage of the risks.