Banks keen on aircraft leasing business

China Bank of Communications, the Industrial and Commercial Bank of China (ICBC), Minsheng Bank and China Merchants Bank (CMB) are all applying to set up aircraft leasing companies, Beijing News reported (in Chinese). Lenders have been interested in the leasing business since administrative rules on financial leasing, which allow Chinese banks to hold stakes in leasing companies, took effect on March 1. A financial leasing company jointly set up by China Construction Bank and Bank of America has been approved recently. About 30% of the aircraft used by Chinese airlines are leased, of which 90% are leased through overseas companies, a source at a domestic airline told the newspaper.