The Development And Implicational Research On Japanese Trust Industry

Although Japanese trust system is quoted from the United States, in the processof its development, it coordinates well with domestic economy and finance. Itsflexible system and mode continuously expand the scale and efficiency, become themainstay of Japan’s financial system, and also have its unique impact.The Japanese trust industry does not occur alone, but occur as trust banks, andhas equal treatment and development opportunity with other banks, securities andinsurance. Due to the advantages on system and policy, trust banks have a dominantposition in Japan’s financial sector. The role of trust industry in Japanese economy isalso very obvious.Japan’s economy has developed rapidly in1960s. In that period, trust industryhas a very important effect. And China’s current economic development and Japanhave some similarities.China’s current economic development strongly demands healthy financialorganization and a sound financial system. However, due to the late development ofChina’s trust industry and the inadequate supporting system, there are huge gapbetween the former and financial requirement.Based on this historical background and premise, this essay chooses developmenthistory, development pattern of trust industry, and the role of trust development to thefinancial and economic development as research objects.This essay tries to give a systematical discussion on the development mode ofJapanese trust industry; uncover the relationship between Japanese trust industry andJapan’s economy. Besides, this essay tries to elaborate the historical function ofJapanese trust industry.In recent decades, Japanese trust industry penetrates into various sectors of thenational economy. Without the vigorous development of Japan’s economy, there is notrust industry in Japan today. Through the optimization of financial resource allocation,Japan’s trust industry plays an active role in changing the structure of capital market,monetary market and economic development. In this case, this article combs current research on trust industry, its origin andbusiness behavior. Based on the theory of financial development, this essay holds theidea that theory of financial development of trust industry is an important part of thetheory of financial development. This paper uses an empirical model analysis methodto states the correlation between of Japanese trust industry and Japan’s economy.More important, the development mode and level of Japanese trust industry isbeneficial to the development of Japan’s economy.Constantly improved trust system is the basic of the development of trustindustry, whereas the constantly development of trust industry becomes the impetusbesides technology progress and capital labor factor in the process of Japan’seconomic development.The development of trust has been driving the optimization of the productionconfiguration, so as to improve the efficiency of capital and labor. Except for thepositive aspects, Japanese trust industry also encounters certain obstacles and negativeeffect during its development. Therefore, this essay raises some policyrecommendations on how to rapidly develop Chinese trust industry. These suggestionsis good for China to avoid detours.Changes in the macroeconomic environment, financial regulation and theinnovation and reform is not only the main driving force of Japanese trustdevelopment in recent years, but also the decisive factor to influence the future of thebusiness.Similar to Japan, the development of Chinese trust industry changes are alsoclosely linked to China’s macroeconomic environment and the financial liberalizationreform.Due to the large scale and characteristics of China’s economic development,there is a certain need of a huge financing market. Therefore, this financing marketnot only relies on bank loans, but also needs capital market, trust company, VC fundand small loan companies to compensate. It is important to expand the wholefinancing channels, establish diversified financing market, in order to meet the capitalrequirements of the development of national economy.Also, social wealth needs to be preserved and appreciation. Outside thetraditional bank deposit and security market, the public has a broad financial demands.They all willing to ensure the safety of capital during the process of fighting inflation.Therefore, as a fixed—income financial product, trust products cater to the current public finance preference.Trust companies effectively combine the needs of project financing demand andsocial financial needs. More importantly, they can find out market space between thetwo, and constantly attract social capital to support economic development; and willproduce economic benefit back to the public——this is the survival ethics andstanding point of China’s trust companies.Hence, we might find out both underlying risks and future direction of China’strust industry by reviewing Japan’s experience.