Economic concentration in the Russian leasing market

Abstract

Aim. To determine the degree of concentration of the leasing market in Russia.Objectives. To calculate the leasing market concentration index; to assign the level of monopolization to each of the leasing market segments and justify the difference in the obtained levels; to formulate promising directions for further study of the leasing market concentration.Methods. The author used empirical and analytical methods of research. The author calculated the Herfindahl-Hirschman index to determine the level of concentration of the market as a whole and in terms of segments to verify the hypotheses put forward in the research about the presence of monopolization in the market of leasing services in Russia and different levels of concentration in the segments of the leasing market.Results. The market of leasing services in Russia is not highly concentrated, despite the presence of major players that occupy a significant market share: the top-3 account for about half of the market volume, the top-10 — 80%. In segments that do not require large amounts of financing, such as special equipment, buses and trolleybuses, and trucks, there is insignificant market concentration. Segments with larger deals, such as real estate, aviation transport, ships (sea and river), are highly concentrated.Conclusions. Contrary to the opinion of some market participants about strong concentration of the leasing market, there is no such concentration in the Russian market. High concentration exists only in the segments in which the average transaction check exceeds the capacity of a number of small lessors to provide financing.