Research on the Current Situation of Financial Leasing ABS and Its Risk of Basic Assets

Abstract

Financing leasing has broadened the financing channels for SMEs in China, alleviating the problem of financing difficulties for SMEs. However, financial leasing companies themselves are also facing difficulties in financing. Financial leasing enterprises are capital-intensive enterprises, which have large demand for long-term and low-cost funds, and traditional financing channels cannot meet the requirements of financial leasing enterprises. The financial leasing ABS has revitalized the leased assets held by the financial leasing company, providing them with a low-cost, long-term source of funding. In recent years, it has been favored by financial leasing companies. The booming financial leasing ABS is the result of the actual demand for funds in the financial leasing industry, the characteristics of ABS and the combined effects of national policies. However, the financial risk of ABS is rapidly developing while the business risks are gradually emerging. The fundamental problem lies in the quality of the underlying assets. Therefore, the risk-related factors related to the underlying assets deserve our attention. Promoting financial leasing the fundamental guarantee for the sustainable and healthy development of ABS lies in improving the quality of basic assets. Keywords—financing lease; ABS; financing channel; risk