Risk assessment of banking groups financing leasing companies

Abstract

Subject. The article investigates the existing approaches to assessment of risk of banking groups, arising from the financing of leasing companies by banking groups being the largest players in the financial lease market. Objectives. The purpose is to develop an original methodology for assessing the risks of banking groups in the financial lease market, arising from the provision of financing to lessors. Methods. I employ methods of systems analysis, comparative analysis, ratio analysis, synthesis, induction and deduction, methods of grouping, classification, and statistical methods. Results. I developed an original approach and methodology to assess the risks of banking groups that finance leasing companies. Conclusions. The existing methods for assessing the creditworthiness of leasing companies do not fully assess risks inherent in financing of lessors. The presented methodology rests on current standard ratios and enables to solve the problem of quantitative risk assessment in financing to leasing companies.