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                          SECURITIES AND EXCHANGE COMMISSION

                                WASHINGTON, D.C. 20549

                                       --------

                                     FORM 10-Q/A
                                   (Amendment No.1)

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                           SECURITIES EXCHANGE ACT OF 1934


                         For the quarter ended June 30, 1997

                            Commission file number 0-27190


                           PARAMOUNT FINANCIAL CORPORATION
                (Exact name of Registrant as specified in its charter)


                    DELAWARE                                11-3072768
           (State or other jurisdiction of              (I.R.S. Employer
            incorporation or organization)              Identification No.)


                    One Jericho Plaza, Jericho, New York      11753
                  (Address of principal executive offices)  (zip code)


                                    (516) 938-3400
                 (Registrant's telephone number, including area code)


          Indicate  by check mark whether the Registrant: (1) has filed all
          reports  required  to be  filed  by Section  13  or 15(d)  of the
          Securities Exchange Act  of 1934 during  the preceding 12  months
          (or for such shorter  period that the Registrant was  required to
          file  such  reports), and  (2) has  been  subject to  such filing
          requirements for the past 90 days. Yes  X         No
                                                ------        -----

                   Number of shares outstanding at August 22, 1997:

             7,945,000 shares of Common Stock, par value $0.01 per share.

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                           PARAMOUNT FINANCIAL CORPORATION

                 AMENDMENT NO.1 ON FORM 10-Q/A FOR THE QUARTER ENDED

                                    June 30, 1997


               Two  typographical errors  contained in  Paramount Financial
          Corporation's  Form 10-Q for the quarter ended June 30, 1997 (the
          "Original Form 10-Q") are hereby corrected, as follows:
           ------------------

                    A.  The word  "SUBSIDIARY" is added to the title of the
          Consolidated   Balance  Sheets   in   lieu   of  the   misspelled
          "SUBSIDIAARY" from the Original Form 10-Q; and

                    B.   The numeric  figure "13,664,228"  is added  to the
          line item  entitled "Additional paid-in capital" in  the June 30,
          1997 column on  the Consolidated  Balance Sheets in  lieu of  the
          typographical error "13,644,228" from the Original Form 10-Q.

               Except as provided above, there are no additional changes to
          the  Original  Form  10-Q.   The  complete  Consolidated  Balance
          Sheets,  as  hereby corrected,  are set  forth  on the  next page
          hereof.

         <PAGE>
         
                            PART I:  FINANCIAL INFORMATION

          Item 1.   FINANCIAL STATEMENTS

                    PARAMOUNT FINANCIAL CORPORATION AND SUBSIDIARY
                    ----------------------------------------------

                             CONSOLIDATED BALANCE SHEETS
                             ---------------------------


                                              DECEMBER 31,     JUNE 30,
                        ASSETS                     1996           1997  
                        ------                ------------     ---------
                                                              (UNAUDITED)

           Cash and cash equivalents.......  $ 3,700,774      $ 889,117

           Investments available for sale..    3,163,841      4,477,320

           Accounts receivable............     2,260,013      4,328,646

           Net investment in direct finance
           and sales-type leases...........   20,942,542     34,741,229

           Assets held under operating
           leases, net of accumulated              
           depreciation...................    21,103,033     15,058,155

           Other assets...................       391,317        463,409
                                             -----------    -----------
           Total assets...................   $51,561,520    $59,957,876
                                             ===========    ===========


               LIABILITIES AND SHAREHOLDERS' EQUITY
               ------------------------------------

           Notes payable..................   $    18,384    $ 3,595,971

           Accounts payable...............     1,062,226        469,655

           Accounts payable - leases......    18,234,518        785,753

           Accrued expenses...............       188,169        211,015

           Obligations for financed                
           equipment - non-recourse.......    23,461,175     46,151,050

           Deferred income taxes..........       425,662        425,662   
                                             -----------    -----------
           Total liabilities..............    43,390,134     51,639,106
                                             -----------    -----------

           Shareholders' equity:

           Preferred stock, $.01 par value;
            5,000,000 shares authorized,                           
            none outstanding...............           --             --

           Common stock, $.01 par value;
            35,000,000 shares authorized,
            and 7,990,000 shares issued
            and outstanding...............        79,900         79,900

           Additional paid-in capital.....    13,644,228     13,664,228

           Accumulated deficit............    (5,552,742)    (5,406,784)

           Treasury stock, 30,000 shares                      
            at cost.......................            --        (18,574)
                                             -----------    -----------

           Total shareholders' equity.....     8,171,386      8,318,770
                                             -----------    -----------

           Total liabilities and                 
            shareholders' equity..........   $51,561,520    $59,957,876
                                             ===========    ===========

                   See accompanying notes to financial statements.

                                      -1-

          <PAGE>

                                        SIGNATURES


            Pursuant to the requirements of the Securities  Exchange Act of
          1934, the Registrant has duly caused this report to be  signed on
          its behalf by the undersigned thereunto duly authorized.


                                        PARAMOUNT FINANCIAL CORPORATION


          Date: August 25, 1997         By:    /s/ Paul Vecker      
                                           ----------------------------
                                             Paul Vecker, Senior Vice
                                               President and Chief
                                               Financial Officer

           

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