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Key Findings

He continued “these results show that the leasing industry is becoming smarter. While there is always potential to improve performance further, the industry is clearly well positioned to deliver attractive and sustainable returns for shareholders”.Key findings

Implicit Risk Weights for SME Leasing in Europe

The Risk Profile of Leasing in Europe

European Leasing: An Industry 'Prospectus'

Participating Companies

We would like to thank the following companies for all the hard work that went into contributing data for this project.

ABN AMRO Lease
ALD Automotive
Arval
BNP Paribas Leasing Solutions
De Lage Landen
DnB Finans
ING Lease
LBBW Leasing
LeasePlan Corporation
Leasint
Lloyds TSB
Lombard
MPS Leasing & Factoring
Nordea Finance
Raiffeisen Leasing
Societe General Equipment Finance
UniCredit Leasing

Leaseurope wishes to recognise the support received from Linedata with regard to the work on "The Risk Profile of Leasing in Europe: The Role of the Leased Asset". More on Linedata at www.linedata.com



Join in the discussion

We have created a Leaseurope sub-group on LinkedIn specifically for risk managers and other professionals.

This is a restricted space where you can share information with European colleagues who work on the same issues you do.

If you would like to join, please click here in order to send a request.

Leaseurope Basel 3 Research

Leaseurope completed an ambitious research project highlighting the low risk nature of leasing in Europe. This unique research was undertaken by Deloitte Conseil France and financed by the Leaseurope Research Fund.

This project includes multiple reports, each of which provides a valuable source of information for regulators, leasing practitioners, parent companies, investors, academics and anyone else wishing to benchmark the industry.

Available reports

Implicit Risk Weights for SME Leasing in Europe

In this report, we look specifically at the riskiness of leasing to SMEs, where low loss rates emphasise the importance that the client places on the asset. Capital requirements are compared to an internal estimate of the necessary economic capital, which show that the regulation significantly overestimates the riskiness of leasing to SMEs.

The key findings for this report can be accessed here.

The Risk Profile of Leasing in Europe: The Role of the Leased Asset

In this report, we broaden our scope to include all client types (SMEs, corporates, public sector & financial institutions) and focus in more detail on loss rates. Here we show that asset ownership has an important role to play in keeping leasing losses lower than those of traditional lending. We also highlight the advantages that the asset brings when it comes to recovering losses on a contract in default.

The key findings for this report can be accessed here.

European Leasing: An Industry 'Prospectus'

In this report, we leverage the findings from the previous two reports and look at why leasing is a good investment, both in terms of value proposition and capital allocation. The purpose of this is to provide something short and easily understandable that can be used when communicating with investors, parent banks/manufacturers etc., whether current or potential.

We use insights garnered from the Risk Management Roundtable, which brought together CROs from some of the largest pan-European leasing companies. We evaluate the performance of the leasing industry through various KPIs from the Leaseurope Index, and show that leasing outperforms the traditional lending sector. We also explain how the leasing industry works, the important role that asset ownership plays, as well as the added value that is brought to the client and investor.

An extract of this report can be accessed here.

How to get the reports

Participating companies and members of Leaseurope's Member Associations are entitled to receive the full reports, detailing all the findings, at no cost.

If you would like to request a copy of any of the full reports, or have any questions on the project, please contact j.bucyte@leaseurope.org or r.alarconabeti@leaseurope.org

Key findings for each of the reports are made publicly available on the Basel 3 Research section of Leaseurope's website (see box on right).

 

Disclaimer

Deloitte Conseil SAS France was commissioned by Leaseurope to produce a series of Deloitte point of view papers for the Basel 3 Research Project. Data presented in the reports were obtained from sources which we considered reliable and coherent. Deloitte Conseil has retained a strictly independent and impartial view in the creation of these reports and the conclusions presented therein are, and will remain, those of Deloitte. Consequently, Deloitte Conseil shall not have any liability to any third party in respect of this report or any actions taken or decisions made as a consequence of the results, advice or recommendations set forth herein.