Research On The Risks Of Trust Corporation In Chongqing

With the execution of"One Law, Two Regulations"and re-registration of trust companies, the trust industry in our country has made tremendous progress. However, our trust companies still face the serious questions of how to give the unique value of trust industry a full play, to run the enterprise in a better structure, to have an inner control system and to raise the level of risk control.Starting from the characteristics and risks of trust industry, with special regard to the industry's development in Britain, America and Japan, this dissertation discusses the remarkable achievement and the adventures lying ahead of our trust companies after the fifth rectification. Focusing on two trust companies in Chongqing, Chongqing International Trust and Investment CO. Ltd. and New China Trust and Investment CO. Ltd.—their financial condition, market environment and risk management, this dissertation points out that they are involved in the latent trouble of high credit asset risk, frequent associated transaction and single trust product. These problems, as has been analyzed, derive from inaccurate market orientation, unsteady supervision ideals, incomplete governance structure and flawed risk management system.This dissertation concludes that trust companies in Chongqing should develop their governance structure and inner control system, strengthen their abilities in risk-identification and risk-evaluation, promote innovation and the cooperation with banks, securities and insurance companies.