Case Study Of Assets Securitization Of Finance Lease

By the end of June 2017,the number of financial leasing companies in China was 63,and the scale of leasing contracts was close to 2 trillion.The number of companies and the scale of leasing business showed a rapid growth.However,there were two major restrictions on the current business growth: Problem of funding sources to expanding business and leverage restrictions.Financial leasing industry rely on bank loans heavily,once the banks reduce the size of borrowing funds or increase the cost of loans,the business expansion and profit margins of financial leasing company must be limited;capital adequacy ratio(leverage of 8%)is the threshold that financial leasing company can't break,so the size of the total assets of financial leasing companies are limited by the capital leverage constraints.In accordance with the promulgation of the 2013 "Financial Leasing Company Management Measures"(draft)Article 26 provides that: eligible financial leasing companies need to go through the approval of the CBRC before the issuance of asset securitization products.Leasing asset securitization business can achieve long-term fixed assets out of the balance sheet and avoid the CBRC's leverage restrictions and transfer the financial leasing company's liquidity risk,so asset securitization will make a financial leasing company to break through business bottlenecks and achieve sustainable development.First of all,this paper reviews the domestic and foreign asset securitization of the relevant theoretical research results,the current research results in the field were summarized.Then,paper analyzes the present situation of the development of China's financial leasing industry and discusses the problems arising from it,puts forward the proposal of using asset securitization to resolve the two dilemmas,then further elaborates its reality and long-term significance,and analyzes the financial leasing assets securitization carried out a feasibility analysis.Then,this paper introduces the case of securitization of financial leasing assets selected briefly,and introduces the specific situation of the case from the aspects of participation parties,asset pool design,structure of transaction and credit enhancement design.This paper focuses on the detailed analysis of the case,the article from the product development motivation,asset pool structure,risk identification and response measures and product pricing of the selected cases were analyzed,pointed out the inadequacies about the application case of asset pool selection,pricing,the rationality and enhance the design and so on.Finally,this paper puts forward some suggestions on the application of securitization of financial leasing assets.Based on the theory of financial leasing asset securitization and the case analysis,the article made a series of recommendations to promote China's financial leasing asset securitization development at the last,including the improvement of relevant laws and regulations and accounting tax policy,with the interbank market and capital market dual advantage,enhance the ability to cope with economic changes.