Summary
Banks have dipped into the leasing market in the past but a combination of customer demand, industry interest and regulatory trends is causing some community banks to take a long look at leasing for the first time. The equipment leasing industry is worth more than $200 billion per year, according to the Arlington, VA-based Equipment Leasing Association, and banks are moving in on the market. The August 2004 edition of the association's ELT Magazine indicates that the banking industry doubled its share of new leasing business from 1997 to 2003, when it captured 44% of the market. The number of bank-owned lessors has increased since 1993. It also notes several factors, including proposed changes in sale-in-lease-out transactions and changes in FASB rules that bode well for banks. These changes tend to reduce variability of lease products and make them look much more like traditional bank loans, the report noted.
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The Lease We Can Do
Banks have dipped into the leasing market in the past but a combination of customer demand, industry interest and regulatory trends is causing some community banks to take a long look at leasing for the first time.
The equipment leasing industry is worth more than $200 billion per year, according to the Arlington, Va.based Equipment Leasing Association, and banks are moving in on the market. A report in the August 2004 edition of the association's...See the full content of this document
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