Research On The Construction Of China 's Trust Risk Compensation Reserve System

China’s trust industry was born in the old society and the real development ofChina’s trust industry started in reform and opening up. After the reform and openingup, the trust industry went through five times reorganization and gradually went onthe road to the normalization of development. After2001,"One law and tworegulations" have been enacted to provide a system to protect the trust industry’sdevelopment. After2007, the trust industry got the rapid development and the assetsize now is just behind banking. Meanwhile, the risk of trust is being exposed andbecome a hidden danger of trust industry.In order to maintain a healthy and orderly development of the trust industry, wehave to establish the risk mitigation mechanisms for industry. The current trustindustry risk mitigation is not scientific. Despite mortgage guarantee and structureddesign is generally adopted, but these measures is not effective enough to take aleading role in company assistance and industry cooperation. The existing system ofcompensation reserve of trust has some problems in normalization and operation,cannot meet the risk mitigation requirements which come from high-speed rising oftrust asset size. Reform is imperative.This paper is based on the perspective of risk mitigation. Firstly, author combsthe development of the trust industry, defines the scope of the study and the basicconcepts of trust risk, risk mitigation, risk mitigation mechanism of trust industry.Secondly, author analyzes the present situation of the current trust industry riskmitigation mechanism, understand that the current system’s backward and insufficient.Thirdly, author analyzes the industry risk mitigation fund system of the securitiesindustry, insurance industry, the fund industry and other financial industry onthe domestic and summarizes the points can draw. Finally, author summarizesthe general idea and basic principles of constructing trust industry risk compensationreserve system on the basis of the above work. On this basis, this paper puts forwardthree kinds of legal solutions of trust industry risk compensation reserve system,and according to the different functional and location selection, choose from the threekinds of legal solutions, puts forward the implementation idea step by step and thesupporting policies.