The impact of financial leasing on banking performance: Analytical research by referring to success experiences in a sample of developing and developed countries

Abstract

This study aimed to analyse the impact of financial leasing revenues on financial performance in the banking sector, by identifying the nature of financial leasing and its benefits, and knowing the extent to which banks benefit from financial leasing and its impact on their banking performance, as well as showing a financing method that enables banks, especially Islamic banks, to rely It must use it to invest its money and investments.

The research referred to the experiences of both Japan and Jordan by knowing the impact of financial leasing in both countries and the extent of their success in benefiting from the advantages provided by this activity. It was found that the success of financial leasing activity in developed countries is evidence of the advantages that this activity provides if it is implemented. correctly.

The research relied on the main hypothesis that financial leasing positively affects the banking financial performance of Islamic banks that adopted this formula.

The research reached the conclusion that financial leasing affects banking performance in developing countries slightly, but its impact in developed countries is better, and the reason for this is due to the instability in the economies of these countries, and this fluctuation in the volume of financial leasing activity in Arab countries reflects many problems and challenges. facing this activity.

One of the most important recommendations reached by the research is the need to provide full support to the banking sector by governments to be able to provide financial leasing services and benefit from them, as well as the need to educate administrators in the banking sector about the importance of financial leasing and the benefits expected from its use.