The Study On The Operating Efficiency Of China's Trust Industry

Efficiency is the concentrated expression of the competitiveness of the trust industry,improve the efficiency of the trust industry is to prevent financial risks,and promote the sustainable developent of the trust.Therefore,it's a priority to explore ways to improve the efficiency of China's trust companies and take measures by evaluating of the efficiency of our trust companies.This paper empirically analyzes the production efficiency of 35 trust companies of China in the years of 2006 to 2009 by using Data Envelopment Analysis. The empirical results show that the production efficiency, pure technical efficiency and scale efficiency of 35 trust companies were on the low level in the years of 2006 to 2009, and production efficiency was declining year by year. However, the total factor productivity of trust companies is showing a growth trend, which is mainly depended on technological progress. But the further increasing of total factor productivity is impeded by the decreasing of the technological change and scale change.This paper furtherly to efficiency valuation for the dependent variable to the Tobit regression analysis of the factors which infulenced the trust industry's prerational efficiency.This paper mainly selected a number of indicators in structure,regional features and management to analyze its impact on trust companies operational efficiency.The results showed that:China's trust companies efficiency is not apparent because of the high concentration of its ownership, inadequate corporate governance,large differences among regional economic development and the shortcomings management.Based on the above analysis,this paper proposed advices for improving China's trust industry operating efficiency.On the one hand improve the external environment for the development of the trust business from improving the legal system and strengthening supervision of the trust industry.On the other hand strengthen trust companies in themselves from improving the trust inernal corporate governance,strengthening cooperation with other financial institutions and cultivating professional talents.