Banks control over 60% of leasing market

The leasing subsidiaries of banks controlled 61% of the leasing market at the end of the first half, with financing granted standing at 474,000 euros, according to the data of the Association of Financial Companies in Romania (ALB). Compared with the same time of 2008, the share of companies controlled by banks went down by two percent. On the other hand, captive companies, usually held by automotive dealers, increased their share from 19% in the first six months of 2008 to 28% at the end of June. Independent leasing companies, controlled neither by banks nor by auto importers, accounted for 7% less of the total market, that is 11%. The leasing market witnessed a 74% decline in the first six months of this year with the value of financing granted standing at about 777,000 euros, after the growth in the same time of last year amounted to 36%. The slump of the market was caused by the steep decline in sales of new cars and industrial equipment. The share of second-hand assets in the total financed by leasing companies doubled in the first half. Whereas they accounted for 6% of the market in June 2008, their share has reached 14% now.