The chief
executive of global lessor De Lage Landen has hit out at
over-regulation of leasing, which he says is the result of a
tarnished reputation for the banking sector.
Ronald Slaats named regulatory changes chief
among the challenges facing the leasing industry, describing the
current round as a misdirected response to the global financial
crisis.
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In an exclusive interview with Leasing
Life, Slaats said: “Our industry is getting over-regulated and
the regulation is not going in the same direction – some times
there are contradictions and sometimes [it appears to be] form over
substance.”
Referring to Basel III and pending lease
accounting changes, as well as to recent developments such as
administrative requirements introduced by the German Federal
Financial Supervisory Authority (BaFin) and, in the US, the Wall
Street Reform and Consumer Protection Act, Slaats said the changes
were in part a response to the banking crisis of 2008.
“Sometimes I think people try to correct what
is not broken,” he said. “We as a company are doing the same things
we did five years ago so we didn’t create any crisis and still we
have this regulation coming onto our shoulders.
“I have to ask myself, ‘what the heck did we
do wrong to get this kind of treatment?’”
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By GlobalDataWith presence in 35 countries worldwide, De
Lage Landen will feel the effect of regulatory changes on several
fronts and Slaats said the Rabobank-owned lessor is acting with
trade bodies to try and influence regulators.
Naming European leasing trade body Leaseurope
and the US Equipment Leasing and Finance Association (ELFA), as
well as other national organisations, Slaats praised the bodies’
work, especially on the lease accounting changes which are shortly
due for a second consultation.
However, he added it was difficult for some
lessors to influence regulators because they are seen as banks
which, he said, are not looked upon favourably.
“We try to influence, we try to get reason
back into the discussion and conversation but it is not always
easy,” he said.
Slaats said the leasing industry needed to
work on how it was perceived, by better explaining “what the
industry is about”. He added that current perception was affecting
recruitment.
“If the industry is looked upon [negatively]
like that it will have an impact on attracting the right
talent,”
“It is already hard to get good people and
this surely will not help. We are a people based company so if we
don’t find the right people how can we grow healthily into the
future?”
A full interview with Ronald Slaats
profiling De Lage Landen will appear in May’s Leasing Life
