As Basel III forces banks to decide which products to restrict and which to give free reign to, bank-owned lessors should make sure their parents fully understand and give consideration to the economic value they add to the overall business, writes Derek Soper, chairman of IAA-Advisory. It is now clear that the ever increasing complexity of financial products and markets plus the whats in it for me culture has lead us into the current crisis The regulators response in the form of Basle III poses greater challenges to our industry as the banks struggle with the dilemma of which products to restrict and which to give free reign to
Derek Soper argues that bank-owned lessors will need to fall in line with the strategy of their parent banks. Change is happening, but the signals coming out of the leasing industry are mixed At IAA-Advisory, we are experiencing a considerable discrepancy between the messages coming from the parent banks and their leasing subsidiaries.
Nows the time to source investment, although private equity has risks. Asset finance companies that require additional funding will probably be considering the desirability and feasibility of attracting external investment If so, they will have to decide whether it is better to own a smaller slice of a potentially larger pie, or lack funds and slow down their business while continuing to own a large share of the business
We are hearing about profit warnings on an almost daily basis and, coupled with this, is speculation that many banks will have more bad news for their shareholders as the US sub-prime mortgages work their way through the worlds financial systems. Are there major implications for our equipment financing market and, if so, how will they manifest themselves
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As we hear about the shortages hitting the leasing industry once again, funding getting more severe, lesser-quality credits having to scramble a bit more vigorously for their facilities, and less enthusiasm from venture capital providers, there is one shortage that I believe is more serious than all the rest quality people
More compliance, less nonsense please The increased complexity of financial products and markets poses greater challenges to our understanding of what has been happening to the leasing industry over recent weeks.