An article published in the September 1980 Bulletin described the growth of leasing during the 1970s.
The present article describes subsequent developments, drawing on discussions with the leasing industry, as well as published statistics.
- The rate of growth of leasing, in real terms, has slowed sharply over the last two years.
- The clearing banks dominate the leasing industry and their capacity to do new business has been reduced recently by slower growth of profits.
- Nevertheless, leasing continues to finance an increasing share of fixed investment.
- The industry has become more jiexible in the range of assets leased and terms of contracts.
- Rental rates have fluctuated less than interest rates.
A t the end of 1981, the Bank took over, from the Department of Industry, the responsibility for collecting and compiling official statistics on capital expenditure by companies which lease out capital goods. A supplementary note to this article updates earlier Department of Industry statistics.