What keeps banks awake at night?



Alex Badran – Bank of America Merrill Lynch International
Beat Kaelin – UBS
Dave Labrozzi – Global Jet Capital Inc.
Marie-Laure Gassier – BNP Paribas
Andreas Schild – UniCredit Leasing Aviation
Jim Simpson – First Republic Bank
Wernir Slavik – Société Générale Equipment Finance
Donald Walsh – Stonebriar Commercial Finance
Moderator: Alasdair Whyte – Corporate Jet Investor

Bankers, like many others at the CJI London 2018 conference, are optimistic right now. Following a Q&A panel with CJI editor Alasdair Whyte, they might be the most optimistic about the market right now.

The panellists kicked off answering the basic question: On a range of zero to 10, how would you rate your bank’s performance last year in the business-jet market? All seven were positive, with answers ranging from a rather-sensible seven and a single ten.

When asked exactly what there is to worry about, the panellists agreed that reputational risk, negative media and a tighter regulatory environment posed the principal threats to the market right now.

But whilst these risks exist, financiers should not be worrying. Andreas Schild said: “It is not the time to worry, but it is the time to capitalise on opportunities. Certain aspects of the industry are stabilising, and there are lots of stimuli, such as new aircraft models entering the market. This will undoubtedly encourage the market, which help us as financiers.”

The bankers are not the only ones confident in financing in the business-jet market. When the delegates were asked if there is enough aircraft finance available, 69% agreed there was.

However, the market’s reservations about banks’ services remain the same. The biggest frustration delegates have when looking for finance was the Know Your Client (KYC) form and credit hassle. The answer received 58% of the delegate votes. Additionally, 31% of delegates said their main frustration was the time needed to close a deal.
The bankers were more optimistic about this year than the last, with most of them positive that in 2018 they will exceed their performances of last year.